Ahmedabad’s residential real estate market bounces back, records 95% growth in 6 months

The volume of sales in the real estate market for residential properties has almost reached the levels recorded prior to Covid 2019, according to a Knight Frank India report. 8197 units were sold in the period between Jan and Jun of this year in spite of a 3% increase in their weighted average price. “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. Although Ahmedabad is considered to be a smaller market in comparison to the larger metros, the rise in the sales of housing units that were registered in 2022 is in comparison to the National Capital Region which has witnessed a growth of 154%. “The Covid pandemic has had a drastic impact on the Ahmedabad residential market, as sales volumes plummeted 69% 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. The massive increase in quarterly launches could be explained by the increase of 3X on a Q-o-Q basis for low-cost unit launches. East Peripheral and the South Peripheral markets contributed 39 percent and 32% of the market respectively in the new launches. Certain submarkets could see a greater number of launches over a long time.