Over 40,000 houses sold in 2023 alone and the average price of real estate rose by 49% between 2018 and 1H 2024.
AMEDABAD, July 30 (The CONNECT) – Ahmedabad’s real estate market has experienced a substantial growth in recent years, with a about 141,570 new residential units launched and 130,090 units sold during Jan 2021 – June 2024.
This is due to several government policy initiatives that have supported the sector’s expansion and facilitated recovery in the post-pandemic period, says a joint report ‘Ahmedabad Residential Overview’ by ANAROCK Group and CREDAI Ahmedabad’.
Shekhar Patel, President Elect, CREDAI National, says, this rapid economic advancement has also spurred significant development in the real estate sector. New development initiatives and enhanced connectivity will attract more investments to certain prominent areas of the city, he said.
The report was unveiled at the Ahmedabad Residential Real Estate Summit 1st Edition hosted by CREDAI Ahmedabad with ANAROCK as knowledge partners.
The report says the past decade has seen the city witness remarkable industrial and infrastructure growth, leading to abundant job opportunities and attracting talent from various regions.
Mandhir Vinaik, Dy. Vice President – Residential (Gujarat), ANAROCK Group, says, Ahmedabad’s residential market has exhibited robust growth post pandemic.
The year 2023 witnessed a peak in sales of over 40,020 units. This represents a significant increase of 34% compared to figures from 2021, Vinaik says.
The city is known as one of the most affordable residential markets as compared to the top 7 cities of India, and has witnessed a significant shift in the supply dynamics. The affordable segment’s share in overall supply declined from 54% in 2018 to 28% in 1H 2024. Also, the share of mid-end projects in total supply during the year surpassed the share of affordable supply, for the first time since 2018.
“The average price of real estate rose by 49% between 2018 and 1H 2024”, says Dhruv Patel, president CREDAI Ahmedabad. “Nonetheless, there was a 16% appreciation in the last year, underscoring a consistent upward trend in the market. Average prices appreciated significantly, reaching INR 5,925 /sqft at the end of 1H 2024 from INR 3,975/sqft in 2018, finds the report.”
Inventory: There are over 64,650 residential units available in the city. The available supply saw a significant decline of 13% when compared to the same period in the previous year, and a 8% decline from the end of the previous year. This indicates high sales momentum during the last few quarters. Inventory overhang also reduced to 17 months at the end of 1H 2024.
