In three months between January-March 2015, only 1750 new housing units were built in Ahmedabad. This is 25 percent less than the number of houses built during the same period last year, stated a report released by global consultants Cushman & Wakefield (C&W) on Thursday.
“Western peripheral locations such as Bopal, South Bopal and Ambli comprised of nearly half of the total launches in the city during the quarter,” stated the report about the city which is currently plagued by unsold inventory in both the residential and commercial segments.
“Around 65 percent of the housing units launched in the first quarter of 2015, belonged to the mid-segment, and an additional 33 percent were in the high-end residential segment,” it added.
A similar trend can also be seen in other cities as well, where the number of new housing units have dipped. In Bangalore, there has been 76 percent drop in the new housing units being launched, followed by Kolkata (-67%), Mumbai (-63%), Delhi-NCR (-58%) and Chennai (-57%).
Similar has been the situation in the commercial property markets of Ahmedabad as well. In the first three months of 2015, there has been a 75 percent decline in the leasing of new office space in the city. Between January-March 2014, over 6.07 lakh square feet of office space was absorbed by various business houses in the city. However, during the same three months this year, only 1.54 lakh square feet of space has been taken up.
Most of the decline in the commercial real-estate market has been contributed due to low demand from the IT-ITeS sector which was the driving force behind office space leases in 2014.