Ahmedabad’s residential market showed signs of recovery after witnessing the adverse effects of the pandemic during the April-May-June quarter of 2020 as property searches grow by a massive 144% during the July-September quarter, reports the latest Magicbricks PropIndex report for the July-September 2020 quarter. During the quarter the average price in the city moved up slightly by 0.6% driven by demand in the affordable localities.
The PropIndex report suggests that 2 BHK configuration and price below Rs.4,000/ sqft dominated the property search criterion in the city while 3 BHK configurations occupied a significant share of 36% in the demand pie, which increased from 31% during the April-June quarter. The city also witnessed greater traction in affordable housing followed by mid-segment properties. It is interesting to note that while lower priced properties witnessed price increase, properties costlier than 5,000/sq ft observed a price decline.
Both, demand and supply had maximum concentration towards northern and western parts of the city, especially across areas such as Chandkheda, Vaishno Devi, Gota, SG Highway, Satellite, South Bopal and Thaltej. Well-connected via SG Highway and Sardar Patel Ring Road, these areas performed well owing to emerging social infrastructure and presence of affordable projects
Speaking on the PropIndex report, Mr. SudhirPai, CEO, Magicbricks, said, “The next 6-8 months are crucial for the revival of residential sector. The onset of the pandemic and the ensuing lockdown have changed consumer preferences. Today, the shift is towards affordability as home buyers have reduced their budget but they haven’t changed their preference in terms of BHK or size. With the festive season just around the corner, we are witnessing a sharp recovery in demand and prices have remained stable for the July-September quarter. This augurs well for the industry and we hope consumers’ buying sentiment will continue to improve and translate into transactions in the coming quarters.”
Gujarat government’s nod for construction of high-rise buildings (70 or more floors), and redevelopment of old urban buildings, along with a second bullet train corridor with Delhi is expected to enhance the city’s real estate prospects. Further, affordable rental housing policy for students, lower income groups and economically weaker sections has been notified by Gujarat Government.