AMC approves road repair project
Ahmedabad Municipal Corporation’s approval to the road repairing project near 29 BRTS bus stops is expected to improve the area’s accessibility and ease traffic congestion. This might also positively impact home prices along the stretches.
AUDA announces 24 hr water supply for Bopal-Ghuma
The announcement of the upcoming infrastructure set-up for 24*7 water supply cheered the residents of Bopal, Ghuma, Shela, Manipur and Godhavi. The tendering process for laying the pipelines and setting up infrastructure for water supply is likely to begin soon. Round-the-clock access to water supply is expected to propel housing demand in the Bopal-Ghuma belt.
Bullet train project receives financial assistance from Japan
Loan assistance worth Rs 5,500 crore from Japan International Cooperation Agency (JICA) is expected to boost the development of Mumbai-Ahmedabad bullet train project. The project, which will be made on the lines of Shinkansen technology from Japan, is expected to enhance mobility and augment regional economic development in the years to come. Meanwhile, resistance from unhappy farmers continued to hamper the land acquisition process of the project.
State permits redevelopment of old housing societies
Approval to the redevelopment of old societies with the consent of 75 percent members is expected to benefit the flat owners residing in dilapidated flats in Ahmedabad, Vadodara and several other small towns. A total of 55 societies have been identified for redevelopment in the first phase. The move is expected to elevate the property prices in these localities.
Ahmedabad witnessed an increase in the number of property enquiries and sales volume in the last quarter of the year, finally putting forth the city’s realty market on a path to revival. Discontinuation of the online building approval system gave a new lease of life to the construction sector, which had earlier come to a standstill due to the crippled online system and subsequent delays in project execution. New launches in the city witnessed an upsurge with a marginal increase in the property prices. Nonetheless, there were still no prominent new launches in the quarter.
Affordable housing units, priced within Rs 50 lakh, took the centre-stage and garnered maximum traction from homebuyers. Infrastructure enhancements, commercial developments and a nod to offline approvals helped the residential market revive in Oct-Dec 2018. There was also a significant decline in the number of unsold housing stock as compared to the figures of H2 last year. The city recorded a total of around 16,000 unsold residential units at the end December 2018.
Select areas in East and West Ahmedabad, such as Chandkheda, Makarba, Bopal, Shilaj, Narol and Naroda emerged as the most popular investment zones. Brimming with affordable housing units, these areas also saw the maximum number of new launches in the city. The inventory priced above Rs 1 crore, however, continued to be in dire straits. Despite all odds, commercial real estate retained its status as the most buoyant sector in terms of demand and occupancy. The ominous Kamurta period, however, marred the home buying sentiment in December 2018.
Compared to the previous quarter, the housing market of Ahmedabad narrated a happier tale in Oct-Dec 2018. Both demand and supply reported a marginal uptick this quarter. New launches, improved infrastructure and measures to boost affordable housing under PMAY promise better realty dynamics in the ensuing quarters. However, for the realty market to revive completely, the city requires strong intervention from the State government.
The Oct-Dec 2018 quarter was marked by an increase in the number of sales and enquiries. There was a marginal one percent growth in the average property values. Also, over 60 percent of the tracked housing localities in the city recorded an upsurge in the capital prices, including almost all the localities around SG Highway.
Shilaj in the West emerged as the forerunner with five percent hike in the average weighted property prices, QoQ, followed by Chandkheda, Gota, Ghatlodia, New Ranip and Vastral with four percent appreciation each. With a plethora of competitively priced housing units and smooth connectivity to the city centre, Bopal and South Bopal, too, reported an upward price movement to the tune of two percent, each, in the Oct-Dec 2018 quarter versus the previous one.
The decision of the State government to continue with the old process of manually approving building plans significantly helped speeding clearances of real estate projects left at the altar. Noticeably, over 239 building plans were approved by Ahmedabad Municipal Corporation (AMC) between October 15 and November 25.
The rental market recorded a two percent increase in the average prices, YoY. South Bopal reported a nine percent growth in its average rentals ‘asks’, followed closely by Vejalpur and Sargasan. Massive commercial expansion, multiple housing options, competitive pricing and excellent connectivity to prominent locales have been some of the predominant factors influencing the rental prices in South Bopal and Vejalpur.
Localities such as Vastral and Amraiwadi are also expected to gain momentum owing to the upcoming metro in the coming years. Trailing close behind the top two localities, rental markets in Paldi, Ambawadi, Kudasan, New Ranip, and Vastrapur reported a rise of seven percent, each in their residential leasing rates, YoY.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.