Ahmedabad Continues to Witness Growth in Demand for Property
Ahmedabad is considered the fastest growing realty market in the Indian real estate sector, after the six major cities. There are several factors that are leading to the city’s growth over the past decade. As a result, the city’s real estate is witnessing a good demand for property. Data obtained from CommonFloor shows that the city has continued to witness a growth in demand for both rentals and purchases.
Growth factors in Ahmedabad
There are several factors that drive the real estate market in Ahmedabad.
1) Ahmedabad has good connectivity to different cities across the country via road, rail and airways. Some of the major highways in the city are NH-8A, NH-8C, Sardar Patel Ring Road and Ahmedabad-Vadodara Expressway. Apart from these roads, there are several railway stations in the city. The city has a bus rapid transit system (BRTS), which is the first BRTS in India. There are several national and international flights from the Sardar Vallabhbhai Patel International Airport.
2) Ahmedabad has thriving manufacturing as well as technological industries, with several Indian companies as well as MNCs having their bases in the city. Some of the industrial areas in the city include Naroda, Odhav and Vatwa. The Gujarat International Finance Tech-City (GIFT) is coming up in Ahmedabad, which will house top financial and IT companies in the world. All these offer very good employment opportunities in the city.
3) Apart from road infrastructure and employment opportunities, the city has a very good civic infrastructure and social amenities. The city does not see any scarcity of power or water supply. There are some world class educational institutions here as well as hospitals and shopping malls. The city also has several sports complexes and stadiums, multiplexes and business centres and parks.
4) Another major driver of real estate in the city are the lower property prices compared to that of other cities. While property prices in other major cities have started sky-rocketing, property prices in Ahmedabad are witnessing a steady and sustained growth.
Demand continues to grow
All the above mentioned factors have led to good growth in demand for real estate in the city. Recent data by CommonFloor shows that the realty sector has been witnessing a continuous growth in number of property seekers. The following graph gives an idea about the growing trend.
Figure 1: Percentage increase in seekers for properties in Ahmedabad (Source: Real insights by CommonFloor.com)
Figure 1 shows that the number of seekers for both rentals and buying have continuously increased over the last three quarters. In fact the number of seekers for purchase increased by about 150 per cent while for rentals, the number increased by almost 400 per cent between Q4 of 2013 and Q3 of 2014.
The following graph shows another interesting trend in the growth of seekers for rentals and purchase in the city.
Figure 2: Percentage distribution of seekers for rent and purchase (Source: Real insights by CommonFloor.com)
Figure 2 shows that while the overall number of property seekers have increased since the final quarter of 2013, the percentage of seekers for rental properties has increased while the number of seekers for purchases has gradually gone down and again picked up in Q3 2014. Whereas, it is only during the third quarter of 2014 that the number of seekers for rentals has slightly dipped. The massive growth in demand for rental properties over the last few quarters is due to the increase in the influx of people coming here in search of employment opportunities as well as the growing property prices.
One may see from the above trends that Ahmedabad continues to witness a healthy growth in demand for residential units.
