Property values in this market have risen almost 45% post- COVID, driven by end-user as well as investor interest. Future growth prospects remain robust.
Average value of property jumped 10% in Ahmedabad in 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% annually, data indicate.
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% growth in the March quarter of 2024. This extraordinary price growth has been the result of a positive buyer sentiment, mainly fuelled by developer credibility, timely project delivery, quality construction and improved transparency in financing, noted in the report by REA India, that also owns Housing.com.
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.
When compared to the January-March period of 2023, home sales in the city shot up by 78% in the same period of 2024 even though new supply dipped 64% during the assessed period, as per data. The drop in launches could be attributed to an 8% annual increase in unsold inventory, the Gurgaon head- quartered property advisor said in its report.
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% growth.
The report also highlights how 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.
Buyer and investor interest in Ahmedabad continues to grow, demand trends show. “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% annual increase in the number of leads on our internal platforms. We expect this property boom to sustain itself after the formation of a stable government post the Lok Sabha elections amid a positive policy environment,” said Jhumur Ghosh, Head of Content and Research, REA India.
