Contrary to the expectations, Ahmedabad witnessed subdued market sentiment amidst the surge of COVID-19 and the subsequent restrictions imposed by the State, February 2021 onwards. The city nevertheless witnessed a substantial increase in the number of new launches, QoQ,as developers anticipated a healthy response, similar to the previous festive quarter.
In the affordable segment, Shela, Shilaj, Vaishnodevi, Ghuma, South Bopal, and Motera garnered attention from buyers and developers alike. Bodakdev, Thaltej, and Satellite are some of the areas that witnessed the launch of luxury projects this quarter.
The grim market scenario forced the developers to negotiate on pricing and payment terms to push sales up. As a result, average property prices across the city reported a meagre increase of a percent, QoQ, in Jan-Mar 2021.
Unlike the sale-purchase market, rental housing observed a 15-20 percent jump in the enquiries, QoQ, as employees from neighbouring towns gradually resumed their offices. Properties configured as 2 BHK and 3 BHK units, with rentals ranging between Rs 8,000 and Rs 25,000 per month, remained the preferred choice of the tenants. In addition, 4 BHK units, with rentals up to Rs 40,000 per month, also observed improved quantum of enquiries as people attested their affinity for larger homes during the COVID-19 crisis and continuing work-from-home trend.
With the restoration in rental demand, the average property rates surged by two percent, YoY. Areas such as Satellite, Jivraj Park, Maninagar, and Jagatpur, enjoyed consistent traction and reported an increase of 8-9 percent, each, in the rental rates, YoY. Sound connectivity, proximity to key business areas and good social infrastructure are factors that augured well for the localities.