Ahmedabad is the seventh-largest metropolis in India and the largest in the state of Gujarat. Traditionally a walled city situated on the eastern bank of Sabarmati, Ahmedabad witnessed an economic boom with the coming up of railways and textile mills in the 19th century which established it as an important trade and commercial centre in the country. Currently, the city has a strong industrial and manufacturing base with businesses rooted in sectors such as textile, chemical and petrochemicals, pharmaceuticals, and automobile. To complement the growing industrial and service sector, a slew of infrastructure projects has been announced in recent years. Some of these projects include increasing the width of the SG Highway to six lanes, and the completion of Metro Phase-1, and the Mumbai-Ahmedabad bullet train project, and the privatisation of the existing airport for efficient regional and international connectivity. As the economic and infrastructure development continues to attract businesses and the workforce, several residential projects have come up around Ahmedabad to meet the demand in the past few years.
The latest property market trends in the city suggests the following:
- New supply in Ahmedabad registered a 39 per cent YoY drop in Q3 2022, with a total of 8,188 units launched in the quarter. While the new launches have registered a dip, in absolute terms, it still remains at par with the 2015 levels.
- Of the total new supply in Q3 2022, 40 per cent of units belonged in the INR 45-75 lakh price bracket. The developer focus was on units with a 3 BHK configuration, which had a total of 56 per cent share in the total new supply in the September quarter.
- Maximum new units were launched in the micro-markets, such as Shela, Chharodi and Lambha, along Sardar Patel Ring Road.
- Demand grew by a healthy 44 per cent during July-September 2022 as compared to the year-ago period. Residential sales in Ahmedabad are at a decadal high, with 7,883 units sold in Q3 2022.
- The majority of demand in Q3 2022 was concentrated in more than the INR 25-45 lakh price bracket (32 per cent), closely followed by the INR 45-75 lakh price bracket, which took a share of 30 per cent in the overall sales. Homebuyers in Ahmedabad preferred apartments with a 3 BHK configuration, which took a share of 44 per cent in the overall sales.
- The micro-markets such as Vatva, Nava Naroda, Shela, Bopal and Chandkheda accounted for the maximum demand in Q3 2022. Most of the sales (68 per cent) in Bopal were concentrated in INR 45-75 lakh price bracket and in less than INR 45 lakh price bracket in the remaining four locales.
- In terms of prices for new supply and available inventory, the city has witnessed 6 per cent YoY growth in Q3 2022.
- The unsold inventory in Ahmedabad stood at 65,163 units in September 2022 and registered a 27 per cent YoY uptick. At the current sales velocity, developers in the city would take 30 months to offload the existing unsold stock compared to 42 months at the end of Q3 2022.