Ahmedabad, as the largest city in Gujarat, has swiftly established itself as a major point of potential in India’s real estate landscape, offering a unique blend of culture and commerce. As this vibrant city continues to evolve, its residential real estate market in 2023 presents a lively image of growth, challenges, and adaptability. Let’s delve into the key facets that shaped Ahmedabad’s real estate landscape during this period.
New Supply Dynamics
Ahmedabad witnessed a distinctive pattern in new supply during the fourth quarter of 2023, with a notable 46 percent dip compared to the preceding quarter Q3 2023. However, on a year-on-year (YoY) basis, the city experienced a remarkable growth of 71 percent, translating into a total of 55,877 residential units launched in the city. This fluctuation in supply dynamics highlights the city’s responsiveness to market conditions and the industry’s adaptability to external factors.
A notable finding regarding the new supply in 2023 is the dominance of residential units priced between INR 45-75 lakh, this budget category accounting for a significant 33 percent of the overall new supply in the market during the year.
This emphasizes the significance of addressing the needs of the middle-income demographic, a sizable portion of potential homebuyers. Given the supply surge, developers are clearly adjusting their offerings to align with the budgetary limitations and aspirations of this group, thereby enhancing accessibility and inclusivity in housing options.
Key Neighbourhoods Witnessing Residential Property Launches and Sales
In 2023, Zundal, Shela, and Nava Naroda emerged as prime locations for new residential launches. These areas experienced notable activity, mirroring the city's expanding urban influence and the deliberate positioning of residential projects along crucial growth corridors.
On the other hand, micro-markets such as Gota, Vatva, and Nikol, along with Nava Naroda, that are strategically positioned along the economic and transport corridors of Sardar Patel Ring Road and SG Highway, recorded maximum sales traction in 2023.
These areas not only witnessed increased transaction activity but also became focal points for both developers and homebuyers.
Demand on the Rise
Despite the quarterly dip in new supply, Ahmedabad experienced a robust uptick in demand, registering an impressive 131 percent YoY growth in 2023. Around 41,327 residential units were sold during 2023, as against 27,314 units sold in 2022.This surge underscores the city's resilience and the sustained interest of homebuyers in the Ahmedabad real estate market.
As with new supply, the INR 45-75 lakh price bracket continued to dominate sales volume, securing a 30 percent share of the total units sold. Following closely, the INR 25-45 lakh price bracket claimed a substantial 26 percent share, reflecting the market's responsiveness to the demand for affordable yet quality housing options.
3BHK Housing Units Take the Lead
Homebuyers in Ahmedabad exhibited a clear preference for 3BHK homes, which accounted for a significant 47 percent share in overall sales in 2023. This trend can be linked to evolving lifestyles, as families are increasingly seeking larger living spaces to fulfil diverse requirements, particularly in a post-pandemic era characterized by the prevalence of remote work. Meanwhile, 2BHK homes followed closely, capturing a 34 percent share of the total sales.
In conclusion, Ahmedabad's residential market in 2023 showcases a city resilient to market fluctuations, adaptive to changing dynamics, and responsive to the evolving preferences of homebuyers. The strategic placement of residential projects, preference for mid-range housing, and the dominance of larger homes reflect the nuanced understanding of the market by both developers and homebuyers. As Ahmedabad continues on its growth trajectory, these trends provide valuable insights for stakeholders looking to navigate and capitalize on the city's real estate landscape.
