- Led by the restrictions imposed by the nationwide lockdown, shortage of labour, and the ongoing liquidity crisis, Ahmedabad witnessed no new prominent launches in Apr-Jun 2020. Site visits and sales, too, reported a dip of 90 percent.
- While the affordable segment, i.e. properties priced below Rs 50 lakh, remained popular among the buyers, a noticeable spike was witnessed in the luxury segment, too, as buyers attested their affinity for reputed developers amid the crisis. As a result, not only the affordable localities but some of the premium areas also garnered decent enquiries during the quarter.
- The city did not witness any major price corrections and the average weighted capital prices largely maintained status quo, QoQ.
- Marked by an oversupply of spaces, the city reported a vacancy rate of 40 percent in the commercial domain, while rentals remained under pressure.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
With the construction industry coming to a standstill during the nationwide lockdown, Ahmedabad witnessed no new prominent launches in Apr-Jun 2020. As a result, the city saw the addition of only 32 new project registrations under RERA in the studied quarter, against 57 in Jan-Mar 2020.
While developers experimented with virtual site visits, buyers remained reluctant to invest in real estate due to uncertainties around employment. Site visits and sales witnessed a decline of around 90 percent, each, as buyers deferred or cancelled their home purchase plans.
The affordable housing stock priced within Rs 50 lakh remained the most popular. The luxury segment, too, reported a spike in the buyer interest this quarter. With COVID-19 altering buyer preferences to some extent, several buyers attested their affinity for risk-free investments, i.e. ready-to-move-in properties offered by branded developers, priced above Rs one crore. Moreover, post the recent earthquake tremors in several parts of the State, the city reported a sudden increase in demand for low-rise and independent homes. As against the previous quarters, properties on the outskirts also received an increased number of enquiries.
Contrary to the widespread expectations by home buyers, the city did not witness any major price corrections in Apr-Jun 2020. The unsold inventory remained unchanged in Ahmedabad and stood at 8,000 units with QTS (Quarters to Sell) standing at three.
Price movement in key micro-markets
|Localities||Apr-Jun 2020||QoQ % Change||YoY % Change||Rental Yield|
|Chandkheda||Rs 3,270 - 3,740||1%||5%||3%|
|Naroda||Rs 2,250 - 2,760||-2%||3%||0%|
|Jodhpur||Rs 5,440 - 6,540||0%||4%||3%|
|Bodakdev||Rs 6,290 - 7,650||2%||6%||3%|
|Ghatlodia||Rs 3,820 - 4,690||2%||7%||2%|
|New Ranip||Rs 3,230 - 3,740||1%||4%||2%|
|Maninagar||Rs 3,690 - 4,500||3%||8%||4%|
|Naranpura||Rs 4,370 - 5,780||-1%||1%||3%|
|Paldi||Rs 5,010 - 6,160||-1%||3%||3%|
|Vasna||Rs 3,910 - 5,270||1%||7%||3%|
* Average 'ask' rates have been calculated as per listings posted on 99acres.com
** Rental Yield has been calculated for a 1000 Sq. Ft. apartment