The price-sensitive real estate market of Ahmedabad witnessed the launch of around 41 new projects in Jul-Sep 2019, the majority of which fell in the affordable segment. Not surprisingly, over 75 percent of buyer demand inclined towards 2 BHK and 3 BHK units, priced within Rs 50 lakh. Apartments priced above Rs 1 crore continued vying for buyers. With an unsold inventory of 9,000 flats, the average quarters to sell (QTS) stand at 2.5. While new projects failed to garner traction, the resale market continued getting buyers’ attention.
Noticeably, the average weighted prices of residential apartments went up by two percent, QoQ. Resale transactions in popular micro-markets of Gota, Chandkheda, South Bopal, and Bopal, among others, remained the major growth drivers. These localities saw average prices of residential apartments surging by 2-5 percent, each, QoQ.
As the festive quarter begins, the real estate market of Ahmedabad depends heavily on the effective implementation of repo rate cuts by lending institutions and quick progress towards construction of the houses approved under Pradhan Mantri Awas Yojana (PMAY).
This, along with the increase in the Floor Space Index (FSI) with special FSI for landmark buildings, might also bring down the cost of residential and commercial projects in the city, further softening prices and propelling demand. New project launches are expected to be low-key in the quarters to come.
Almost one-third of the tracked localities in Ahmedabad saw average ‘ask’ prices of residential apartments surging by 3-5 percent, each, in Jul-Sep 2019. Localities in the East and around SG Highway garnered maximum buyer traction. Areas such as Gota, Vastral, and Chandlodia emerged as the bellwethers with a five percent hike in the average capital values, each, QoQ. While Gota is a delight for affordable home seekers, with ample supply of apartments within Rs 30-50 lakh, Vastral, too, brims with competitively priced units and projects from known developers.
Select areas in the West such as Vasna and Naranpura, too, reported a surge of four percent in the average ‘asks’, each, QoQ. While Naranpura is an established residential locale, Vasna has gained prominence as the gateway of business and retail spaces in Ahmedabad. Average property values in Vasna hover around Rs 3,500-4,500 per sq ft. Housing a number of projects from Grade A developers and boasting of proximity to Prahladnagar, South Bopal recorded an appreciation of three percent in the capital values, QoQ.
The rental market reported a three percent increase in the average ‘asks’, YoY. Of all, Kudasan and New Ranip continued to be the best performing locales. The localities recorded a noticeable surge of seven percent in the average rental rates, each, YoY.
Proximity to Gandhinagar and affordable rentals as compared to other prominent localities such as Bodakdev, Satellite, and Vastrapur drive healthy traction to these localities. While a 2 BHK in Kudasan is available for Rs 9,000-12,000 per month, a similar unit in New Ranip can be rented for Rs 7,000-8,000 per month.
The residential demand in Ahmedabad continued seeing improvement, QoQ, positively impacting sales, especially in the resale segment. Infrastructure projects such as APMC-Shreyas corridor, which will be operational by 2020, and the six-laning of SG Highway are seen as major growth propellers for the real estate industry in the city.