The residential real estate market in Ahmedabad has seen a 45% increase in property values over the past five years. Due to COVID-19, the average price per square foot rose to Rs.4,150 in Q1 2021, compared to Rs.2,867 in Q1 2019, according to PropTiger data.
The housing price saw an average growth of 10% during the period of January-March 2024 compared to the same period last year.
PropTiger.com is a subsidiary of the real estate technology company REA India, which also operates real estate listing websites Housing.com and Makaan.com.
Vikas Wadhawan, Group Chief Financial Officer of REA India and Business Head of PropTiger.com, highlighted the fact that Ahmedabad has emerged as a significant real estate market in India.
He also added that, Ahmedabad, being the hub of economic activity, draws in a large number of buyers and investors from nearby states like Madhya Pradesh and Rajasthan. Its advanced infrastructure guarantees smooth connectivity with other key financial hubs in India, such as Mumbai.
Ahmedabad's strong economy and strict safety measures have made it a top real estate market in India post-COVID-19. According to PropTiger, housing transactions in the city increased by 78% in Q1 2024, reaching 12,915 units compared to 7,256 units in the same period last year.
In the first quarter of this year, the new supply in Ahmedabad decreased by 64% to 3,116 units, down from 8,655 units in the same period last year.
The real estate market in Ahmedabad has shown significant growth post the COVID-19 pandemic. Housing sales reached 41,327 units in 2018, compared to 27,314 units in 2019, 16,874 units in 2020, 12,156 units in 2021, and 25,734 units in 2022.
In the same vein, there was an increase in new supply to 55,877 units last year, compared to 32,663 units in 2022.
Launches reached 41,357 units in 2021, a significant rise from just 7,687 units in 2020 and 15,648 units in 2019.
The average housing price was Rs.4,000 per square feet in October-December 2023, in contrast to Rs. 3,700 per square feet in the corresponding period of the 2022 calendar year.
New supply surged to 55,877 units in 2023 from 32,663 units in 2022. Launches reached 41,357 units in 2021, up significantly from 7,687 units in 2020 and 15,648 units in 2019. The average housing price was Rs.4,000 per square feet in October-December 2023, compared to Rs.3,700 per square feet in the same period of 2022.
In Q4 2021, the average housing price per square foot was Rs.3,452, up from Rs.3,213 in Q4 2020 and Rs.3,107 in Q4 2019.
The report emphasized that the expansion of Ahmedabad's real estate sector has closely followed the planning and establishment of the Gujarat International Finance Tec-City (GIFT City) which began in 2007.
GIFT City, India's version of London's Canary Wharf and Shanghai's Pudong, aims to boost India's economy to USD 30 trillion by 2047. Ahmedabad's real estate industry has been greatly impacted by this thriving financial center.
The popular proptech platform proprtiger said,"GIFT City, India's answer to London's Canary Wharf and Shanghai's Pudong, aims to boost the country's economy to $30 trillion by 2047. Ahmedabad, the main beneficiary of this emerging financial hub, has seen a major impact on its real estate sector."
This phenomenon has additionally resulted in a significant surge in the interest shown by Non-Resident Indians (NRIs) in the tier-2 property market.
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