Ahmedabad’s residential real estate market bounces back, records 95% growth in 6 months
The sale of houses in Ahmedabad witnessed a strong recovery registering a 95 per cent growth in the first half of calendar year 2022, stated a report released by Knight Frank India, Wednesday. The sales volumes in the residential real estate market have almost reached levels seen in pre-Covid 2019, it said.
A total of 8,197 residential units were sold in the city between January and June this year. This is more than the 4,208 units sold during the same period in 2021. The sales increased despite a 3 per cent hike in weighted average price of residential units.
“Ahmedabad has traditionally been a price-sensitive market and developers have been mindful to not raise the prices despite the increase in input costs for items such as steel and cement. Homebuyers are willing to scout for buying opportunities in the outskirts of the city for properties that will offer them a significant lifestyle upgrade. Plotted developments in gated communities continue to find favor with home buyers and investors, ”said Balbir Singh Khalsa, executive director of Knight Frank India.
Though Ahmedabad is considered a smaller market compared to larger metros, the growth in sales for housing units registered in 2022 is second only to the National Capital Region which has seen a 154 per cent growth. “The Covid pandemic has had a drastic impact on the Ahmedabad residential market, as sales volumes plummeted 69 per cent year-on-year, when the pandemic hit in the first half of 2020. The market has recovered steadily since then, with sales volumes increasing in every successive period. This recovery has accentuated in the first half of 2022 with sales volumes almost reaching the levels seen in pre-pandemic 2019, ”the report said.
Apart from sales, there has been a 67 per cent spike in the number of new housing projects launched in the first half of the calendar year. Between January and June this year, 10,385 housing units were launched as against 6,226 new units launched in 2021.
North and West Ahmedabad contributed 55 per cent of the sales this year. Eastern markets such as Naroda, Vastral, Nikol, Kathwada Road and Odhav accounted for 23 per cent of the total sales.