Ahmedabad's Real Estate Boom: 13% YoY Increase in Housing Prices
Ahmedabad sees significant rise in housing prices, driven by demand for affordable and mid-segment properties. Infrastructure improvements and influx of new residents contribute to the growth.
Ahmedabad Real EstateHousing PricesCredaiColliersIndian Real Estate MarketReal EstateSep 01, 2024
The average price for housing in Ahmedabad currently stands at INR 7,335 per square foot, with a noted increase of 2% from the previous quarter. Notably, a significant portion of the unsold inventory - estimated at 64% - is concentrated in the affordable and mid-sized housing segments. Additionally, unsold inventory has seen an 8% reduction over the quarter, a trend mirrored in other major cities across the country.
Emerging neighbourhoods in Ahmedabad are driving much of this price growth. The central-west localities, including Ambawadi, Bodakdev, Vastrapur, Memnagar, and Paldi, have reported the highest annual price rises, experiencing increases of around 16%. Meanwhile, areas in the eastern parts of the city, such as Bapunagar and Maninagar, are also witnessing notable demand, with an annual rise of 14%.
Dhruv Patel, the president of CREDAI Ahmedabad, emphasizes that the city's combination of livability and affordability has made it a preferred destination for those looking to invest in real estate. The influx of new residents from other regions appears to be a driving factor behind this rising demand. Infrastructure improvements, including new transport links and public amenities, are further expected to bolster residential property activity in the coming years.
Nationally, average housing prices have similarly risen by 12% YoY, currently sitting at INR 10,804 per square foot. This steady growth in housing prices has persisted for 14 consecutive quarters, highlighting the broader trends of a post-pandemic recovery in the real estate sector.
In summary, Ahmedabad's real estate market reflects a mix of strong local demand, strategic infrastructure development, and overall trends seen across other major Indian cities. As the market evolves, it may not only attract local buyers but also investors from other regions looking for opportunities in one of India's most livable cities. The ongoing rise in housing prices, paired with a decrease in unsold inventory, indicates a promising outlook for Ahmedabad's residential real estate sector in the near future.
Frequently Asked Questions
What is the current average price for housing in Ahmedabad?
INR 7,335 per square foot
Which neighbourhoods in Ahmedabad are driving the price growth?
Central-west localities, including Ambawadi, Bodakdev, Vastrapur, Memnagar, and Paldi
What is the national average housing price in India?
INR 10,804 per square foot
What is the main driving factor behind the rising demand for housing in Ahmedabad?
The influx of new residents from other regions
What is the outlook for Ahmedabad's residential real estate sector in the near future?
Promising, with ongoing rise in housing prices and decrease in unsold inventory
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