Housing prices in Ahmedabad surged by 13% year-on-year by Q2, 2024, positioning the city third in India for price growth, after Delhi-NCR (30%) and Bengaluru (28%), according to CREDAI and Colliers. The average housing price in Ahmedabad now stands at INR 7,335 per square foot, with emerging areas like Ambawadi and Bodakdev seeing a 16% rise. The city's robust demand, especially in affordable and mid-segment housing, is coupled with an 8% reduction in unsold inventory. Infrastructure improvements and livability make Ahmedabad an increasingly attractive market for both local buyers and investors.
Housing prices in Ahmedabad have experienced a significant rise, with a reported increase of 13% year-on-year (YoY) by the end of the second quarter, according to a recent study by CREDAI and Colliers. This growth positions Ahmedabad as the city with the third highest increase in housing prices across India, following Delhi-NCR and Bengaluru, which saw upticks of 30% and 28%, respectively. The upward trend in prices is largely attributed to a healthy demand for residential properties, especially in the affordable and mid-segment categories.
According to the report, the average price for housing in Ahmedabad currently stands at INR 7,335 per square foot, with a noted increase of 2% from the previous quarter. Notably, a significant portion of the unsold inventory-estimated at 64%-is concentrated in the affordable and mid-sized housing segments. Additionally, unsold inventory has seen an 8% reduction over the quarter, a trend mirrored in other major cities across the country.
Emerging neighbourhoods in Ahmedabad are driving much of this price growth. The central-west localities, including Ambawadi, Bodakdev, Vastrapur, Memnagar, and Paldi, have reported the highest annual price rises, experiencing increases of around 16%. Meanwhile, areas in the eastern parts of the city, such as Bapunagar and Maninagar, are also witnessing notable demand, with an annual rise of 14%. As these areas continue to develop, their attractiveness to homebuyers is likely to grow even further.
Dhruv Patel, the president of CREDAI Ahmedabad, emphasises that the city's combination of livability and affordability has made it a preferred destination for those looking to invest in real estate. The influx of new residents from other regions appears to be a driving factor behind this rising demand. Infrastructure improvements, including new transport links and public amenities, are further expected to bolster residential property activity in the coming years.
Nationally, average housing prices have similarly risen by 12% YoY, currently sitting at INR 10,804 per square foot. This steady growth in housing prices has persisted for 14 consecutive quarters, highlighting the broader trends of a post-pandemic recovery in the real estate sector. Notably, while demand remains strong, several cities, including Pune and Chennai, have also seen reduced levels of unsold inventory, suggesting that buyers are continuing to engage with the market actively.
In summary, Ahmedabad's real estate market reflects a mix of strong local demand, strategic infrastructure development, and overall trends seen across other major Indian cities. As the market evolves, it may not only attract local buyers but also investors from other regions looking for opportunities in one of India's most livable cities. The ongoing rise in housing prices, paired with a decrease in unsold inventory, indicates a promising outlook for Ahmedabad's residential real estate sector in the near future.
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