Ahmedabad Realty Witnesses Huge Growth in Past Decade
The Lok Sabha (LS) elections are heating up. One of the most discussed topics currently is the ‘Gujarat Model’, which includes growth in infrastructure over the last 10 years in the state of Gujarat. Growth in real estate across important cities such as Ahmedabad and Surat can be considered as a result of this growth in infrastructure.
The Ahmedabad real estate market has witnessed huge growth in the last two to three years and is expected to grow further post elections.
Ahmedabad realty market overview
Ahmedabad is the hub of the textile, pharmaceutical and chemical industries. The real estate market is driven by demand from these sectors as well as other sectors. “Out of the total sales in Ahmedabad, about 60 per cent is driven by end-users and the remaining by investors. In the last 4-5 months decent sales have happened by the end-users but investors have taken a backseat. Investors are waiting for elections to get over and then analyse and enter the market,” states Prakash Bavadiya of Prime Property Services, one of the leading realtors in Ahmedabad.
The prime residential areas in the city are Shahibaug in the northern part of the city, Satellite, Bodakdev, Vastrapur, Prahlad Nagar, Sarkhej-Gandhinagar Highway, Thaltej (in the western part of the city), Maninagar and areas around Kankaria and Chandola Lake in the south eastern parts of the city and Ashram Road in the central part. The areas currently commanding the highest demand for residential space are South Bopal, Bodakdev, Vastrapur, Nicol, Nava Naroda and New Ranip. “There is high scope for appreciation in property values particularly towards the outskirts. One can easily expect 15-20 per cent price rise in the next 1-2 years,” confirms Bavadiya.
Flats, apartments, serviced apartments, bungalows, penthouses and township properties are cropping up all over to meet the demand. Bopal, Ghuma and Shela are 3 localities where leading builders currently have large land parcels. Once elections are over they will look to launch their projects. The areas will see huge development in the next one year as it is also supported by AUDA. Sabarmati River Front Development Projects has revived realty market in areas like Ashram Road, Vadaj and Paldi.
Ahmedabad realty price trends
According to Bavadiya, “In the last 4-6 months, the property market in the city has been more or less stagnant owing to the elections. Developers have not launched many new projects and sales have not been as good as previous quarters. But, it is projected that once elections are over, there will be a definite increase in sales.”
There is a huge unsold ready-to-occupy inventory in Ahmedabad. Due to this reason, developers had to cut down prices by almost 25 per cent in several localities. “Prices have been more or less stagnant in the last 5-6 months owing to the elections. But it is likely to appreciate post elections,” he adds.
The market in the city has grown tremendously over the past decade due to ultra-progressive policies and intelligent development governance. The city is providing extraordinary and unprecedented returns on the real estate front, and is one of the most exciting investment destinations in India today.
Residential property appreciation in the city has been to the tune of 50 per cent over the last three years. Experts believe that there will be a consistent 10-15 per cent growth in property rates across all sectors in Ahmedabad. The exact rate in certain locations will depend on the incidence of market drivers there. It is also believed that if people buy properties currently then they are likely to benefit a lot, provided they have a holding capacity of 2-3 years. They will see appreciation of at least 20-25 per cent in the next 2 years.
Developers and projects in Ahmedabad
Some of the key developers include B Safal, Goyal & Co., Signature Group, Dev Group, Savvy Group, Adani, Godrej amongst others. Some of the big projects include Godrej Garden City, Adani Pratham, Acme Aditya Greens, Richmond Grand, Parshwanath Metrocity, Safal Parisar II, Indiabulls Centrum and Dev Paradise.
