Dussehra Sales Slump as Ahmedabad Property Market Faces Challenges
Ahmedabad: The real estate market in Ahmedabad experienced a downturn on Dussehra, with demand remaining sluggish. Industry experts point to an oversupply in certain areas and a significant rise in property prices as key factors contributing to this slowdown.
They termed this year's festive season the weakest since the Covid year. However, the Confederation of Real Estate Developers' Associations of India (CREDAI) Gujarat remains optimistic about a potential revival in demand, with the possibility of Ahmedabad being selected to host the Commonwealth Games becoming a possible catalyst.
Pravin Bavadiya, former president of the Ahmedabad Realtors' Association, said, 'The city witnessed huge demand after Covid, but now the market is grappling with oversupply and soaring land and property prices. This has led potential buyers to exercise caution, opting for ready-to-move-into apartments over new projects. The demand is primarily concentrated in the affordable segment, while the mid-range and luxury segments are struggling.'
The shift in buyer preference is also influenced by the desire to avoid the risks associated with project delays and the financial burden of paying both rent and EMIs, he added. Despite these challenges, CREDAI expressed confidence that recent GST rate cuts could boost disposable income, channelling more funds into real estate.
Tejas Joshi, President of CREDAI Gujarat, said, 'Additionally, lower interest rates, which typically encourage home buying by making loans more affordable, will also play a role in improving demand. If Ahmedabad is chosen to host the Commonwealth Games, it could lead to a sharp rise in demand.'
