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 healthy 88 per cent growth in Q2 2022 as compared to the previous quarter. With 9,497 units launched, the new launches in the city are at par with the 2015 levels.
- The majority (42 per cent) of the new supply in Ahmedabad is concentrated in INR 45-75 lakh price bracket. In fact, the launched units of this ticket size have been taking maximum share in the new supply for the past three quarters as against the INR 25-45 lakh price bracket, which has been dominant for the past decade. However, it is too soon to tell if this trend will persist in the coming quarters.
- Of the total units launched, 47 per cent were in the 3BHK configuration, followed by the 2BHK configuration, accounting for 40 per cent. Localities such as Bopal, Bhadaj, and Sanand led the overall new supply in Q2 2022.
- Sales grew at the fastest pace of 30 per cent sequentially amongst the top-eight cities, catapulting the demand back to pre-pandemic levels in Ahmedabad.
- Nava Naroda, Vatva, Bopal, Nikol, and Vastral witnessed maximum traction in Q2 2022 and led the cities’ demand momentum.
- The majority of the demand in Q2 2022 was concentrated in the INR 25-45 lakh, and INR 45-75 lakh price bracket with 29 per cent share each in the overall sales pie.
- The homebuyers in Ahmedabad continued to prefer larger configurations such as 3BHK, which took 42 per cent of the overall sales taking place in this segment.
- The surplus new supply has pushed the unsold inventory by 50 per cent in Q2 2022 as compared to the same period the previous year. With 64,858 units currently available, the unsold inventory levels have reached the highest in Ahmedabad. The sustained demand momentum has, however, reduced the inventory overhang positively to 33 months in Q2 2022, as compared to 42 months in the year-ago period.
- The city saw an 8 per cent YoY appreciation in weighted average prices in Q2 2022, bringing new supply and inventory prices in the range of INR 3,500-3,700 per square foot.
Know about: Flat on rent AhmedabadÂ
