Moderate Appreciation Makes Entry Point in Gujarat Attractive
While most of the property markets in India witnessed a drop in property values or at best remained the same in the last one year, Gujarat saw a good growth in property prices. Although there was a good price hike, this has been a steady growth and not a sudden jump. This has provided an attractive entry point for property buyers and investors in Gujarat.
Gujarat witnesses growth in property prices
Gujarat witnessed an overall growth of 6% in property prices in the last one year. Ahmedabad witnessed a growth of 6% while Surat witnessed 5% growth in property prices. These have been some of the few real estate markets which have seen a positive growth in the realty sector. Out of the 26 cities in India covered by the National Housing Bank’s Residex, only 12 cities witnessed a marginal appreciation. Ahmedabad and Surat were two such cities. It was also found that the transaction rates in these cities did not dip even though the pace of movement has been slow.
Analysts bullish about real estate
Analysts tracking growth in Gujarat are of the opinion that moderate property price appreciation is actually an indication of the market’s resilience. This also means that no speculative buying is happening in the state. This eventually makes the entry point for buyers, especially end-users, attractive. In the long run, this also proves a good bet for investors.
The other reasons supporting the bullish growth include growing infrastructure in the cities and the industrial projects. Furthermore, the fundamentals of property market are firmly grounded across cities such as Surat, Vadodara and Ahmedabad.
The right time to buy property
Analysts also believe that this is the right time to buy property in Gujarat, as prices are on the lower side compared to cities such as Mumbai and Delhi and there is a positive sentiment from a political standpoint. For end-users, this is the right time as inventory in terms of ready-to-move properties are available at cheaper prices with good chance for negotiations. Currently, there is a good movement of 3/4/5 BHK apartments across various micro-markets including Surat, Ahmedabad and Vadodara.
While the property market in Gujarat is not a ‘buyer’s market’ in a pure sense, the trends in the state are indicative of a buyer’s market. Post general elections, the overall economy of the country as well as the property market is expected to make a comeback. With that, Gujarat real estate market will turn out to be a hot spot for the realty sector.
