Largely an end-user driven market, Ahmedabad in the recent times has been clocking in demand from prospective home buyers, mostly in the affordable category. As per the latest PropTiger study, Nava Naroda, Vatva and Nikol emerged as top winners in this segment clocking in maximum sales this year. The analysis was based on numbers available for the July-September quarter of FY 2019-20.
Here’s a quick look at what is available in these localities:
|Avg psf in 2013|
|Rs 2,100||Rs 32 lakh||Rs 68 lakh||Rs 1.67 crore||Rs 1,650|
|Vatva||Rs 1,780||Rs 20 lakh||Rs 35 lakh||Rs 72 lakh||Rs 1,850|
|Nikol||Rs 2,350||Rs 28 lakh||Rs 48 lakh||Rs 1.28 crore||Rs 1,950|
Source: PropTiger Datalabs. All figures are average values.
While the above-mentioned localities fared well in terms of sales, Santej, Ranip and Chandkheda saw the maximum number of launches in the affordable housing segment which is sub Rs 45 lakh.
Other popular choices
The popularity of certain localities over the others show a clear trend that Amdavadis are in search of convenient homes- one that doesn’t lead them to compromise on their lifestyle and is at a comfortable distance from their workspaces. A cursory glance of listings on Housing.com establishes this trend.
Satellite, Vastrapur, Thaltej, Motera, New Ranip, Bopal, Gota, Chandkheda and Vastral, are among the most popular investment destinations. The broad price band ranges between Rs 2,000- 6,500 per sq ft, depending upon the exact location, brand of the developer, amenities provided to prospective home buyers and age of the building.
Despite the slump in the real estate market, residential developments have cropped up across Ahmedabad but are mostly concentrated along the western and northern parts of the city. Ashram Road, the central business district in Ahmedabad is saturated, leading to a spurt in offices and commercial space take-up in and around SG Highway. Therefore, more residential developments have sprung up here.
Locations in Ahmedabad which are popular with home buyers
Bopal, Chandkheda, Thaltej are among the most popular localities that buyers look out for. With average capital value at Rs 3,240 per sq ft, Bopal is a buyer’s favourite. With plenty of options available in terms of property type- residential plots, villas, independent houses as well as apartments, Bopal is a coveted pincode. For a property in Bopal, you will need to spend anywhere between Rs 15 lakh to Rs 40 crore or more depending upon various factors such as location, size of the property, age of the unit etc.
Rental properties command anywhere between Rs 5,000 to Rs 1.60 lakh per month depending upon the amenities and location.
In a recent development, Bopal residents are in for some good time. After an 18-year old wait, Bopal will be merged with the Ahmedabad Municipal Corporation in January 2020. Till now, Bopal was under the Ahmedabad Urban Development Authority (AUDA) jurisdiction. Issues such as solid waste management, drainage and sewerage will thus be addressed in a far more effective way.
Chandkheda is in demand, thanks to the proximity to various strategic locations such as the IT parks, GIFT City etc. Property prices is in the range of Rs 15 lakh to Rs 3 crore while the average capital value stands at Rs 3,150 per sq ft. Rental properties are also in the range of Rs 5,000 to Rs 2 lakh per month depending upon various qualitative and quantitative factors.
However, one of the issues that residents have to deal with is the poor air quality.
Affordable homes woo buyers in Thaltej. The locational advantage with respect to SG Highway that houses most of the corporate offices, plus the residential outlook of the area, keeps demand pouring in.
A 2-BHK unit in the area, on an average costs Rs 50 lakh, for a 3-BHK unit, you would have to spend almost Rs 95 lakh.
With Thaltej falling on a planned metro corridor node, easy connectivity to Vastral in the east would help even out the travel time between two popular micro-markets of the city.
At Thaltej, homes on rent command anywhere between Rs 8,500- Rs 1.50 lakhs per month.
Other popular localities
Satellite is in demand given its established outlook. The pricing in this market is an indicator of its popularity among the well-heeled in the city.
For those looking at affordable homes, choices are few but bigger configurations such as 3, 4-BHK units find takers. These may be priced anywhere between Rs 1.30-1.85 crores. The area is served by the Ahmedabad Municipal Transport Services and the Bus Rapid Transit System. Proximity to and connectivity via SG Highway helps raise housing demand in the area.
Of late, the Ahmedabad Municipal Corporation has been looking at ways to give facelift to the roads in the area on public demand.
Rental values vary from Rs 6,000- 1.25 lakh per month, depending upon the size of the flat and amenities.
Vastrapur’s claim to fame is the Indian Institute of Management, NIIT and Gujarat University. On the real estate front too, the area manages to absorb the student populace, the mid-segment home buyers as well as offers options for those looking at premium homes.
See also: NRIs fuelling luxury housing in Ahmedabad
You would have to reserve a budget of Rs 75 lakhs on an average if you are planning on a 2-BHK unit. A 3-BHK unit could cost you Rs 1 crore. Trends suggest that prices have stabilised over the last one year and probably shows no sign of a further drop.
While your investment in Vastrapur is a good one, be careful that you do not end up opting for an unauthorised construction. The state government has been trying to regularise all such constructions in the recent times to check squatters in and around the area.
Rental values can range between Rs 8,500- Rs 2.5 lakh per month.
Motera residents can cheer the world’s biggest cricket stadium that would soon surface in the area. The locality would also be connected by the metro network by 2019 and the route would lead up to the international airport. Real estate values saw a climb in the recent times owing to better infrastructure. A six lane Visat-Gandhinagar highway ensured smoother connectivity. Social infrastructure too, ensured mushrooming of apartments alongside integrated townships, row houses as well as commercial developments. The Ring Road allows for easy access to centres such as Ashram Road, CG Road and SG Highway.
Properties on rent move in the market for anywhere between Rs 5,500 to Rs 50,000 per month.
What works for New Ranip, Gota and Vastral is the pricing. “An investment in these areas is capital erosion proof. While areas such as Ranip are calling out for better infrastructure, in times to come, there is scope for good return on investment. It also works for an investor who is unwilling to pay a higher sum or for someone who wants to make a safe investment without bothering much about the kind of return on investment he would be able to make,” explains Vasant Rajhans, broker, City Realty.
|Locality||2-BHK unit||3-BHK unit||4-BHK unit|
|Bopal||Rs 37 lakh||Rs 52.17 lakh||Rs 1.64 crore|
|Chandkheda||Rs 30.32 lakh||Rs 54.71 lakh||Rs 1.51 crore|
|Thaltej||Rs 50.35 lakh||Rs 98.39 lakh||Rs 1.72 crore|
|Nikol||Rs 27.58 lakh||Rs 45.54 lakh||Rs 1.13 crore|
|Gota||Rs lakh||Rs lakh||Rs 1.37 crore|
|Jodhpur||Rs 32.78 lakh||Rs 63 lakh||Rs 1.40 crore|
|Satellite||Rs 27 lakh||Rs 51.50 lakh||Rs 1.20 crore|
|Prahlad Nagar||Rs 26 lakh||Rs 41 lakh||Rs 87 lakh|
|Khodiyar||Rs 34 lakh||Rs 50 lakh||Rs 98 lakh|
Ahmedabad to become a smart city
Smart City Ahmedabad holds the promise of a planned city. The municipal corporation is trying to revolutionise the way it is looking at making the city smarter. For example, the integrated transit platform attempts to integrate multimodal transport solutions in a way that each household could boast access to public transport within 400 metres of his house. Besides, real time parking availability, mobility cards, CCTV access to traffic and parking lots are on the radar.
Besides, connected civic centres, civic services across online and mobile platforms, common payment platform across transport services, widened public spaces, faster approvals for business and faster building plan approvals, green energy have found a mention in the corporation’s planning book.
Additionally, the Delhi-Mumbai Industrial Corridor, the Ahmedabad Dholera Special Investment Region is in the making. Additionally, the Gujarat International Finance Tec-City, popularly, GIFT City is expected to place Ahmedabad along the lines of Dubai and Singapore. North and West Ahmedabad is in for gains, thanks to these developments.
Future real estate prospects of Ahmedabad
Industry insiders believe there is potential in investment on the stretch between Ahmedabad and Dholera Sanand- Sarhei Road. Besides, Ahmedabad’s improving connectivity with Gandhinagar could further tweak the prospects of micro-markets in the city favourably.
Make sure you park your money in a project, only after careful research and due diligence.