Demand for bigger and second homes driving demand for residential real estate in the outskirts of Ahmedabad’s – Magicbricks

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 Ahmedabad posted the highest price increment amongst the TIER I cities

 Affordable neighbourhoods driving the city’s real estate

As COVID-led social distancing requirements made people to look for either bigger homes or second homes in the outskirts, the real estate market in Ahmedabad has benefitted from being one of the cheapest markets for residential real estate in India reports Magicbricks PropIndex report Q4.

According to PropIndex report, sustained by commercial segments and new launches, western and north-western parts of the city continued to do well in Q4 2020. At more than 1%, the city posted the highest price increment amongst the TIER I cities in the country for Q4, bringing down the YoY decline to -1.5% in 2020.

Interestingly, demand for bigger homes has propelled the share of 3 BHK configuration even as the share of 1 and 2 BHKs has come down. 3 BHK configuration received 46% of demand in Q4 2020, up from 36% in Q3 and 31% in Q2.  Moreover, the share of affordable units, costing less than INR 4,000 per sqft has also come down due to garnering 47% of the demand in Q4 2020

Commenting on the PropIndex report, Sudhir Pai, CEO, Magicbricks, said, “With uncertainties around the economy and jobs now stabilising, we are witnessing signs of growth in the real estate sector as well.  The economy has also stopped shrinking since October 2020 and now we are seeing a V-shaped recovery in the real estate sector. There are predictions of net positive GDP growth for the ‘Oct-Dec 2020’ quarter at 0.1% and rebound growth at 10% for FY 2021-22, making it surpass pre-COVID levels. With impetus from the government in the form of stamp duty cuts in some states and first-home buyer incentives, buyer demand is expected to stay at elevated levels in 2021.”

Having a geographically uniform development history, in spite of the fact that most of the residential, as well as commercial development is concentrated in the West and North sections of the city. This has paved way for development of premium options at affordable prices around Sardar Patel Ring Road and Sarkhej-Gandhinagar Highway. The COVID-led situation has made buyers increasingly focus on these locations. Chandkheda, Shela, Vastral, and Bopal have seen increased buyer interest in the quarter

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