Healthy Property Price Appreciation
Torbit Realty- June 25, 2024
Buoyed by the positive buyer sentiment amidst? improved transparency and timely delivery, Ahmedabad property market is on upswing , marked by significant increase in property prices.??Property values in this market have risen almost 45 percent? post- COVID, driven by end-user as well as investor interest and future growth prospects remain robust.
Average value of property has jumped 10 percent? in Ahmedabad over the past one year, driven primarily by a positive buyer sentiment, as per data available with real estate company PropTiger.com.? Price movement in some key areas has been substantial, with key markets witnessing growth in the range of 10-25 percent? annually.This spike in average property value is more prominent when compared to rates prevalent before the Coronavirus pandemic.
When compared to the March quarter in Calendar Year 2019, property values in Ahmedabad showcased almost 45 percent growth in the March quarter of 2024. This extraordinary price growth has been the result of an elevated buyer sentiment, mainly fuelled by developer credibility, timely project delivery, quality construction and improved transparency in financing.
As consumer aspirations rise, there is a marked shift towards investing in premium properties. Consequently, the ticket size of properties has seen a substantial increase, with new housing projects featuring properties priced up to Rs 10 crore.
Consumer interest drives sales, new supply
When compared to the January-March period of 2023, home sales in the city shot up by 78 percent in the same period of 2024 even though new supply dipped 64 percent during the assessed period, as per data.? The drop in launches could be attributed to an 8 percent annual increase in unsold inventory.
Compared to March quarter of 2020, new supply in the city showed 15x growth in the March quarter of 2024. Sales during the same period showcased a three-fold jump with 186 percent growth.
Year Sales Launches Price
Q1 2019 6495 4679 2867
Q1 2024 12915 3116 4150
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%Change 98.84% -33.40% 44.75%
Year Sales Launches Price
Q1-2023 7256 8655 3758
Q1-2024 12915 3116 4150
%Change 77.99% -63.99% 10.43%
“As the nerve centre of economic activity, Ahmedabad attracts numerous buyers and investors from neighbouring states such as Madhya Pradesh and Rajasthan. Its well-developed infrastructure ensures seamless connectivity with other major financial centres in India, including Mumbai. The city’s robust economic environment and high safety standards significantly enhance its appeal as a leading housing market in India post-covid,” says Vikas Wadhawan , Group CFO, REA India and Business Head of PropTiger.com.?
The post-Covid period, according to Wadhawan? has ushered in a robust phase of growth for Ahmedabad’s Tier-2 real estate market. The combination of trusted developers, rising consumer aspirations for premium properties, and enhanced market transparency have created a dynamic and rapidly evolving market landscape. And as this trend continues, the outlook for the residential real estate market in Ahmedabad remains highly positive.
Check out the PropTiger.com data report here: https://shorturl.at/4sRHE