Ahmedabad, June, 2024: 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.

Consumer interest drives sales, new supply

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.

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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.

“As the nerve centre of economic activity, Ahmedabad attracts numerous buyers and investors from neighbouring states such as Madhya Pradesh and Rajasthan. Its well-developed infrastructure ensures seamless connectivity with other major financial centres in India, including

Mumbai. The city’s robust economic environment and high safety standards significantly enhance its appeal as a leading housing market in India post-COVID,” said Vikas Wadhawan, Group CFO, REA India and Business Head of PropTiger.com.

“The post-Covid period has ushered in a robust phase of growth for Ahmedabad’s Tier-2 real estate market. The combination of trusted developers, rising consumer aspirations for premium properties, and enhanced market transparency have created a dynamic and rapidly evolving market landscape. As this trend continues, the outlook for the residential real estate market in Ahmedabad remains highly positive,” Wadhawan added.

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.

“Positioned as India’s response to global financial districts like London’s Canary Wharf and Shanghai’s Pudong, GIFT City is envisioned to propel India towards becoming a $30 trillion economy by 2047. Ahmedabad, as the primary beneficiary of this burgeoning financial hub, has experienced a substantial multifaceted impact on its real estate sector. This development has also led to a notable increase in interest from Non-Resident Indians (NRIs) in this tier-2 property market,” the report said.

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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.