Housing prices in Ahmedabad highest in 3 years: Report

According to a joint report by real estate association CREDAI and domain experts Colliers and LicensesForce, housing prices in Ahmedabad increased by 9 percent on a year-on-year basis. 5,927 per sq ft during the April-June quarter of this calendar year.

According to the Housing Price-Tracker Report 2022 report, Gandhinagar witnessed the highest growth of 13 per cent on a year-on-year basis.

Configuration-wise, the prices for the 3BHK have increased by 7 per cent annually, reveals the report.

Besides this, Ahmedabad also witnessed a rise in unsold inventory, led by significant new launches.

The report showed that unsold inventory in the city grew by 36 per cent, with the maximum number of units sold in the eastern suburbs.

Read also: Housing prices in Pune on an upward trend in Q2 2022: Report

According to the report, the upcoming integrated logistics development and smart infrastructure estate development of Sanand GIDC will further boost the residential activities in the city.

joint report showed that the resurgence in residential real estate demand led to increase in prices in the top eight cities such as Delhi, Mumbai, Kolkata, Pune, Hyderabad, Chennai, Bengaluru and Ahmedabad during the second quarter (April-June) of 2022.

Highest growth seen in Delhi-NCR Residential prices increased by 10 per cent year-on-year, followed by Ahmedabad and Hyderabad at 9 per cent and 8 per cent year-on-year, respectively.

In the report, Pankaj Kapur, Managing Director, LiaiseForce said that the prices will remain “range bound”.

“To stay price capped. With the discounted EMI schemes, we see that developers are absorbing the impact of the increase in interest rates. The sales volume is likely to improve as we are seeing an increase in new supplies along with festive offers,” said Kapoor.

CREDAI National President Harsh Vardhan Patodia attributed the rise in housing prices to key construction materials as well as increase in labor wage rates, apart from some strong fundamentals.

He said the demand could be marginally impacted due to hike in interest rates on home loans but sales would continue to rise from September.

Ramesh Nair, chief executive officer, Colliers India, said the market sentiment is likely to remain high in the upcoming festive season, resulting in higher sales despite the interest rate hike.

Established in 1999, the Confederation of Real Estate Developers Association of India (CREDAI) is the apex body of private real estate developers in India. It represents over 13,000 developers in 221 city chapters in 21 states.

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