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 21 per cent YoY dip, with 32,663 units launched in 2022. However, in absolute terms, the supply continues to remain above the pre-pandemic levels of 2019. A closer look into the decline indicates that the registrations fell amidst the transition from RERA 1.0 to RERA 2.0 version, reflecting on the new supply numbers.
- Out of the total new supply in 2022, 39 per cent of units were in the INR 45-75 lakh price bracket. The tally of all four quarters suggests that most of the new units were launched in the locales of Gota, Shela and Nava Naroda.
- On the sales side, Ahmedabad registered a robust uptick of 162 per cent YoY, pushing the demand to its highest in 2022. The property demand has gathered momentum post-pandemic as service sector companies are now looking to expand their footprint outside of the conventional hubs like Pune, Bengaluru and Hyderabad amid the hybrid working scenario.
- Out of the total sales, 31 per cent of units belonged in the INR 25-45 lakh price bracket, followed by the INR 45-75 lakh price bracket, which took a share of 29 per cent.
- Homebuyers preferred apartments with the 3BHK and 2BHK configurations, which took a share of 43 per cent and 39 per cent, respectively in overall sales in 2022.
- Micro-markets such as Nava Naroda, Vatva, Bopal, Gota and Nikol along the transport corridors of Sardar Patel Ring Road and SG Highway recorded maximum traction in 2022. Our market insights also suggest that GIFT city, an upcoming financial and technology services hub approximately 25 kms away from Ahmedabad, is quickly garnering interest of the local homebuyers in the city.
- The prices for the new supply and available inventory have registered an uptick of 7 per cent YoY in Ahmedabad. The rise in prices comes on the back of rising construction costs and the firming up of end-user demand in key localities.
- The growth in new supply has pushed unsold inventory levels by an 8 per cent YoY growth, which stood at 68,445 units at the end of 2022.
- At the current sales velocity, builders in the city would take nearly 30 months to offload the existing unsold stock compared to 45 months at the end of 2021.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
Related Posts
Ahmedabad property sales and new supply back to pre-RERA levels of 2015 in September 2022 quarter.
2022 ends on a high for India’s property market – demand up by 50% YoY in top cities.
Pune property demand grows at the fastest pace after Mumbai – records 55% YoY growth in September quarter.
Residential land prices in Bengaluru grows by 13%.
Gurugram residential plot prices continue to soar, grow by 15%.
Chennai residential land prices record double digit growth.
