Housing prices in Ahmedabad have appreciated by an average 45 per cent in the last five years because of rise in demand of residential properties especially after the COVID pandemic, according to PropTiger.
The average housing prices stood at Rs 4,150 per square feet in January-March this year, as compared to Rs 2,867 per square feet in the January-March period of 2019, as per the data compiled by real estate consultant PropTiger.
The average growth in housing price during January-March 2024 was 10 per cent from the year-ago period.
PropTiger.com is part of real estate technology firm REA India, which also owns real estate listing platforms Housing.com and Makaan.com.
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Vikas Wadhawan, Group Chief Financial Officer of REA India and Business Head of PropTiger.com, noted that Ahmedabad has become one of the major real estate markets in India.
"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," he said.
The city's robust economic environment and high safety standards significantly enhance its appeal as a leading housing market in India post-COVID, he observed.
PropTiger data showed that housing sales in Ahmedabad during January-March 2024 rose 78 per cent to 12,915 units, from 7,256 units in the year-ago period.
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New supply in Ahmedabad fell 64 per cent in January-March this year to 3,116 units, from 8,655 units in the corresponding period of last year. Ahmedabad market has expanded a lot after the COVID pandemic.
Housing sales stood at 41,327 units last year, as compared to 27,314 units in 2022, 16,874 units in 2021, 12,156 units in 2020 and 25,734 units in 2019.
Similarly, new supply rose to 55,877 last year, from 32,663 units in 2022.
Launches stood at 41,357 units in 2021, up from mere 7,687 units in 2020 and 15,648 units in 2019.
Average housing price stood at Rs 4,000 per square feet in October-December 2023, as against Rs 3,700 per square feet in the same period of 2022 calendar year.
In the October-December period of 2021, the average housing price was Rs 3,452 per square feet, as compared to Rs 3,213 per square feet in the year-ago period.
The average housing price stood at Rs 3,107 per square feet in October-December 2019.
"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," Wadhawan said.
He noted that the outlook for the residential real estate market in Ahmedabad remains highly positive.
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The report highlighted that 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 USD 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," PropTiger said.
This development has also led to a notable increase in interest from Non-Resident Indians (NRIs) in this tier-2 property market, it added.
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