Healthy Property Price Appreciation

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.

“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.

The  growth of Ahmedabad’s property market has aligned closely with the planning and development of the Gujarat International Finance Tec-City (GIFT City) initiated in 2007. Positioned as India’s response to global financial districts like London’s Canary Wharf and Shanghai’s Pudong, GIFT City is envisioned to propel India towards becoming a $30 trillion economy by 2047. Ahmedabad, as the primary beneficiary of this burgeoning financial hub, has experienced a substantial multifaceted impact on its real estate sector. This development has also led to a notable increase in interest from Non-Resident Indians (NRIs) in this tier-2 property market.

The convergence of an improved job market, significant infrastructure upgrades and positive market sentiment have catalysed a resurgence in Ahmedabad’s real estate sector in the past half a decade. Buyer interest in the Ahmedabad residential market remains robust with 8 percent annual increase in the number of leads on our internal platforms. We expect this property boom to sustain itself following the formation of a stable government post the Lok Sabha elections amid a positive policy environment”, says Ms. Jhumur Ghosh, Head of Content & Research, REA India.

The demand trends show that the interest of  buyer and investor in Ahmedabad property market interest continues to grow and  policy boost from Modi 3.0 will further  catapult Ahmedabad as a high growth property destination.