- Despite an initial surge of 5-10 percent in buyer enquiries and sales, Ahmedabad witnessed stagnancy in the market due to rising number of COVID-19 cases in Gujarat.
- Amid frequent restrictions imposed by the State, site visits reduced considerably, simultaneously impacting sales which declined by 15-20 percent, QoQ, in Jan-Mar 2021.
- The quarter witnessed the addition of 58 projects (new and redeveloped) in Jan-Mar 2021, as against 35 projects in the previous quarter. The East and the West zones, collectively accounted for over 40 percent of the new supply.
- The affordable segment, i.e. properties priced below Rs 45 lakh garnered over 70 percent of the buyer traction this quarter.
- Low uptake and the addition of new units led to piling up of the existing unsold residential stock, which currently stands at 7,000 units, majorly in the eastern and western quadrants of the city.
- Due to consistent negotiations on the pricing and payment terms, property prices increased marginally by one percent, QoQ, in the studied quarter.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Rising number of COVID-19 cases in the State pulled back housing growth in Ahmedabad, which witnessed an initial surge of 5-10 percent in the number of homebuyer enquiries and sales soon after the end of Kamurta in January 2021. The frequent extensions of night curfews marred sentiment and resulted in reduced site visits. Homebuyers took a backseat, thereby impacting housing sales, which declined by 15-20 percent, QoQ, in the reported period. Housing units priced within Rs 45 lakh claimed almost 80 percent of the sales and 75 percent of the total buyer enquiries in Jan-Mar 2021.
With construction activity gradually picking up the pace, several developers launched their projects in Jan-Mar 2021. In total, 58 projects (new and redeveloped) were added to the market during the studied quarter, as against 35 projects in Oct-Dec 2020. The East and the West zones collectively accounted for over 40 percent of the new residential supply, with maximum share of 2 BHK and 3 BHK units. A few projects were also launched in the high-income housing segment, measuring up to 6,000 sq ft and configured as 4 BHK and 5 BHK units.
The addition of new units amid deferment of home buying decisions led to piling up of the existing inventory, which currently stands at 7,000 units and needs about 2.5 quarters to sell. Nearly 70 percent of this inventory is concentrated in the under-construction segment in the eastern and western quadrants of the city. Areas such as Nikol, Vatva, Vastral, Shela, Shilaj, Bopal, and Hathijan account for heavy unsold residential stock.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Chandkheda||3,800-4,200||9||3.16%|
|Rs 40 lakh - Rs 1 crore||South Bopal||3,200-4,400||13||3.63%|
|Rs 1 crore and above||Satellite||5,800-6,800||16||3.02%|
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments