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Gujarat: Residential market in Ahmedabad records slow growth of 3%

The latest report on Ahmedabad’s residential market published by global real estate consultants Knight Frank shows that the sales during the year stood at 16,713 units which is just three per cent more than the residential units sold in 2018.

By: Express News Service | Ahmedabad |
January 8, 2020 1:37:15 am
Ahmedabad news, ahmedabad city news, gujarat news, Residential market records slow growth, indian express news Despite the rise in sales in 2019, the residential market is a far cry from the sales seen in 2011 and 2012, when close to 30,000 units were sold. (Representational Image)

Despite the push given to the real estate sector in Gujarat, the sales of homes in Ahmedabad market rose by just 3 per cent in 2019.

The latest report on Ahmedabad’s residential market published by global real estate consultants Knight Frank shows that the sales during the year stood at 16,713 units which is just three per cent more than the residential units sold in 2018. About 73 per cent of these houses sold during the year are priced less than Rs 50 lakh. Last year, the percentage of sales of homes of similar ticket sizes stood at 74 per cent.

Despite the rise in sales in 2019, the residential market is a far cry from the sales seen in 2011 and 2012, when close to 30,000 units were sold. The sales figures come at a time when the government has been slashing interest rates thus encouraging more people to buy homes, the government also floated a Rs 25,000 crore Alternate Investment Fund to help the real-estate sector complete unfinished projects. Apart from this, the state government too has been making it easier for the real-estate developers in Gujarat to get permission and easy access to land.

There has been a sharp rise in the number of new project launches in the residential segment in Ahmedabad, the report states. Compared to 2018, when new launches hit a rock bottom with just 4,167 housing units, the number of new houses launched in 2019 rose by almost three times to 11,487 units. However, most of these new launches are under the Rs 50 lakh.

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For instance, 62 per cent of the new homes launched in 2019 were priced between Rs 25 lakh and Rs 50 lakh, while 29 per cent of the homes were priced below Rs 25 lakh. Compared to 2018 when five per cent of the new launches were priced between Rs 1 crore and Rs 2 crore and six per cent were priced over Rs 2 crore, there were no launches in these price brackets in 2019.

These new launches in 2019 are nowhere near the 45,120 units launched during a single calendar year in the Ahmedabad market during 2011. “Positive sentiments in office transaction are also being reflected in the residential market, which has also started showing signs of growth in sales volumes,” said Balbirsingh Khalsa, Branch Director of Ahmedabad, Knight Frank India.

North zone comprising of areas such as Gota, New Ranip, Tragad, Chandkheda and Motera grabbed the highest share of total sales at 31 per cent. The West zone came close second with 25 per cent share in sales volumes with locations such as South Bopal, Shela, Shilaj, Thaltej and Science City Road witnessing good velocity of sales.

Office leasing in Ahmedabad in 2019 registered a 50 per cent year-on-year jump over transactions in 2018.

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