- During H1 2024, Ahmedabad saw the launch of 17,360+ new units and sales of approximately 22,850 units.
- Available inventory as of H1 2024 was approximately 64,650 units – a decline of 8% from 2023.
- Inventory overhang reduced to 17 months by H1 2024-end, from 20 months by 2023-end, significantly down from 46 months in 2020.
- Residential real estate sales volume across Ahmedabad saw the highest-ever peak of nearly 40,020 units in 2023.
- Around 42,310 units launched in 2023, compared to 36,515 units in the previous year, marginally short of the 2021 peak.
- Average property prices rose 49% between 2018 and the first half of 2024; the last 12 months alone saw prices appreciate 16%.
GOWRI MANICKAVASAGAM
AHMEDABAD, JULY 31
Ahmedabad’s real estate market has experienced substantial growth in recent years, owing to several government policy initiatives and measures that have supported the sector’s expansion and facilitated recovery in the post-pandemic period.
A joint report ‘Ahmedabad Residential Overview’ by ANAROCK Group and CREDAI Ahmedabad’, unveiled at the first edition of Ahmedabad Residential Real Estate Summit hosted by CREDAI Ahmedabad with knowledge partner ANAROCK, highlights that the past decade has seen the city witness remarkable industrial and infrastructure growth. This has led to abundant job opportunities, attracting talent from various regions.
In his welcome address, Dhruv Patel, President of CREDAI Ahmedabad, said, “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. ”
Elaborating on the significance of Ahmedabad, Dhruv Patel said, “The country’s first Unesco recognised Heritage City Ahmedabad has excellent multi-model transport facilities, educational institutions of national importance, medical tourism capital of the country, first bullet train to link Mumbai with Ahmedabad, with affordable residential projects among all metros. Our next report will cover the twin city of Gandhinagar.”
Shekhar Patel, President Elect, CREDAI National, said, “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.”
The summit also featured an interesting panel discussion between ANAROCK Chairman Anuj Puri, CREDAI President Elect Shekhar Patel, CREDAI Ahmedabad Chairman Chitrak Shah, Bakeri Group Managing Director. Pavan Bakeri. The panelists shared their insights about the current and emerging trends in real estate sector, policy and regulatory changes, growth opportunities and challenges, evolving consumer preferences, use of technology and digitalisation, and other topics.
Housing Supply and Sales
Mandhir Vinaik, Deputy Vice President – Residential (Gujarat), ANAROCK Group, said, “According to ANAROCK Research, Ahmedabad’s residential market has exhibited robust growth post-pandemic, with a cumulative total of approximately 1,41,570 new residential units launched and 1,30,090 units sold during Jan 2021 to June 2024. The year 2023 witnessed a peak in sales, with over 40,020 units sold. This represents a significant increase of 34% compared to figures from 2021.”
Ahmedabad, one of the most affordable residential markets as compared to the top seven cities of India, 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 the first half of 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.
Surge in Prices
Dhruv Patel, President of CREDAI Ahmedabad, said, “The average price of residential real estate in Ahmedabad rose by 49% between 2018 and the first half of 2024. There was a 16% appreciation in prices in the last year itself, underscoring a consistent upward trend in the city’s real estate market. Average prices also appreciated significantly, reaching Rs. 5,925 per sq ft at the end of the first half of 2024 from Rs. 3,975 per sq ft in 2018 according to the report.”
Available Inventory
According to the report, over 64,650 residential units are available in the city. The available supply saw a significant decline of 13% when compared to the same period in the previous year, and an 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 the first half of 2024.
