Ahmedabad Property Prices to Surge from July 1: Builders' Final Call

Shocking news has emerged for people planning to buy a home or office in Ahmedabad. From July 1, property prices across the city are set to rise significantly. A final decision to this effect was taken by the Builders’ Association at a key meeting held at CREDAI House in Ahmedabad.

The construction sector has been hit hard by rising raw material costs triggered by the ongoing conflict in the Middle East. Against this backdrop, CREDAI Ahmedabad organised a special meeting today to discuss the expected hike in property prices. More than 400 members attended the meeting. CREDAI Chairman Rajesh Vaswani, President Alap Patel, and the city’s leading builders held detailed discussions on all factors impacting the real estate market.

Organization Chairman Rajeshbhai Vasvani stated that due to the war situation in the Middle East Asia, the supply chain of raw materials used in buildings has been disrupted. Due to this international tension, the cost of imported materials has increased significantly, and raw material prices have recorded a staggering increase of 20% to 60%.

The prices of main materials used in construction have increased drastically by approximately 30% to 50%, and this increase is still continuing. As a result, project costs have increased significantly. If this war continues for long, even more serious impacts on the construction industry may occur in the next 6 to 12 months.

Apart from the increase in construction costs, construction activity has slowed down due to not getting sufficient raw materials on time. On the other hand, even though elections in other states are over, migrated laborers (workers from other states) have not returned from their native places. Due to this, a large-scale labor shortage has also emerged, which has created a situation where ongoing construction projects may take more time to complete or face delays.

Generally, when a project is implemented, a time limit for possession is fixed according to RERA (Real Estate Regulatory Authority) policy rules. If possession is not given to customers within the stipulated time limit, there is a provision for penalties on builders as per RERA rules. Thus, on one hand raw materials have become expensive and on the other hand there are delays in completing work, due to which a situation has arisen where real estate businessmen currently have to bear financial burdens from all sides.

This price increase has been termed as 'Phase-1' (first phase) by CREDAI. A citizen-friendly planning has been made to increase prices gradually so that customers do not face a large financial burden all at once. Under this decision, price increases will be implemented in two different categories:

- Newly started projects: Projects that have recently started will see a direct price increase of 10%. - Projects nearing completion: Projects that are nearing completion will see an increase of approximately 5% depending on the stage of the project.

CREDAI has clarified that no price changes will be made until June 30. However, from June 15, 2026, the process of price increases for new bookings and certain projects may indirectly begin, which will be fully implemented from July 1. Earlier, the organization had appealed to citizens to purchase homes at the earliest opportunity by placing advertisements in daily newspapers on May 15, 2026, following which many aware citizens have also purchased properties.

Organization President Alapbhai S. Patel stated that considering the prevailing global circumstances, this situation of price increase is beyond the control of developers. Compared to other major cities in the country, housing prices in Ahmedabad city are very low, and developers here work with very minimal margins. Therefore, now it has not remained possible for builders to conduct business by absorbing such increased prices of raw materials within their limits.

The construction industry provides the largest employment in the country and has an important share of 7.8% in GDP. Moreover, the state government also receives very large revenue from this sector through taxes and various types of fees.

In this difficult situation, developers have demanded relief from the government in GST, stamp duty, and other taxes to lighten the burden on the public. Besides this, keeping in mind the 'Force Majeure' provision in the RERA Act, representations have been made to the RERA Authority and the government to extend the time limit for completing projects amidst the prevailing war situation and labor shortage, and builders are hoping for a positive response.