Ahmedabad – Residential Real Estate Overview

 Ahmedabad has historically been the most affordable market among the top eight cities under our coverage. This can largely be attributed to the exemplary planning that has gone into housing the city’s growing population. 

The city’s municipal area has expanded since 2006, from 186 sq km to the current 466 sq km, which has effectively sustained a healthy balance between population growth and its built-up area. This has also helped keep the city-centre relatively less congested compared to other Indian cities and avoided low-density sprawl in its periphery. 

The Ahmedabad residential market has recovered well from the pandemic lows with sales volumes increasing steadily, almost reaching pre-pandemic levels in 2022. Supply levels also increased dramatically with developers looking to capitalise on the resurgence in demand having aggressively launched projects with larger areas and better amenities, at price points that have steadily increased during this period. These buoyant market volumes pushed prices up across the market, especially in the premium segments which have outperformed other segments across the country. 

With the strong recovery in demand and prices seen over the past two years, it remains to be seen if market momentum continues in 2023. However, sales levels have remained relatively stable with 7,982 units sold during H1 2023, approximately 3% lower than the levels seen a year ago. Home loan rates are now almost back at the levels existing before the pandemic and could have been a factor in demand growth taking a pause.