- With site visits reaching almost 60 percent of the pre-COVID-19 levels, residential sales in Ahmedabad revived considerably in Jul-Sep 2020.
- The affordable and the mid-income housing segments, i.e. properties priced below Rs 40 lakh and Rs 80 lakh, respectively, continued to garner maximum buyer interest.
- Led by the developer’s efforts to liquidate existing inventory, unsold inventory levels fell from 8,000 units in Apr-Jun 2020 to 7,500 units in Jul-Sep 2020.
- Areas, such as Shela, Vatva, Naroda, Shilaj, Chandkheda, Vaishnodevi, Nikol, Vastral, Bodakdev, Thaltej and Bopal, remained popular among buyers and developers alike.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
As compared to Apr-Jun 2020, the real estate market of Ahmedabad narrated a merrier tale in Jul-Sep 2020. Sales that had earlier plummeted to near inconsequential levels in Q2 2020 revived considerably as site visits reached almost 60 percent of the pre-COVID-19 levels post the gradual ease in the lockdown restrictions this quarter. In sync with the demand, over 70 percent of the sales were reported in the below Rs 50 lakh price bracket, of which, around 45 percent were in the budget bracket of Rs 25-30 lakh.
The affordable and the mid-income housing segments, i.e. properties priced below Rs 40 lakh and Rs 80 lakh, respectively, ruled the roost in terms of demand, garnering over 70 percent buyer interest in Ahmedabad.
The city reported the addition of almost 38 projects this quarter, as against nearly 32 in Apr-Jun 2020. A lot of these projects are by the developers who had re-applied for registration post the increase in Floor Space Index (FSI). A majority of the projects were launched in North and West Ahmedabad, offering mostly 2 BHK and 3 BHK units.
The liquidity crisis that intensified in 2019 has had a telling impact on the residential market with developers focusing more on offloading the existing inventory. Resultantly, the unsold inventory levels fell from 8,000 units in Apr-Jun 2020 to 7,500 units in Jul-Sep 2020. The Quarters to Sell (QTS), too, fell in tandem with the depleting inventory levels - from three in the previous quarter to 2.5 in the current period.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Nikol||2,500-3,200||7||2.71%|
|Rs 40 lakh - Rs 1 crore||Chandkheda||4,000-4,800||9||3.18%|
|Rs 1 crore and above||Jodhpur||5,700-6,600||16||2.93%|
* 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