Author : Aasheesh Palliwal
Straddling the Sabarmati River is Ahmedabad, the largest city of Gujarat. It has a very rich history and tradition and is home to many prominent national leaders, like, Mahatma Gandhi and Sardar Vallabhai Patel. From having historic buildings, it has come a long way to have unique and aesthetically designed properties in Ahmedabad that attracts and impresses many across India.
Ahmedabad city is divided into two regions by Sabartmati River – Eastern and Western Region. The Eastern part houses the old cities, old bazaars, temples and the main railway station, while the western side is well planned; it has many education institutions, residential colonies, shopping malls and the famous CG Road and SG Highway.
Today with the excellent development, it is one among the top 10 cities to invest for housing projects in India. Stamped as the best city to reside and earn, it is alluring many people across India as well as expats and NRIs to invest in it. Needless to mention, it has a good infrastructure that is the main reason behind the real estate boom.
Residential development in the city
Housing projects in Ahmedabad is witnessing development of residential townships, flats, apartments, row houses, malls, flyovers and office space and all these additions are changing the skyline of the city. Almost all the developments are happening in the western side of Ahmedabad, in areas like, Sabarmati, Naroda, C G Road, CTM, Ashram Road, Shahibaug and Satellite where there is a huge potential for residential growth. In the last few years the capital appreciation has been around 50 per cent.
After the current government announcement to provide affordable housing projects in India for all by 2022, Ahmedabad has gained good demand for affordable housing segment and to boost the demand, government has announced friendly policies. Based on these policies, the housing projects in Ahmedabad are available at an affordable range from Rs. 3 lakh to Rs. 25 lakh. Renowned developers like Tata Housing, Adani Township and Real Estate and Arvind Real Estate are creating such landmark buildings for the growth and to offer housing projects for all in India.
Small units like 1 BHK have seen an upswing in demand by 3 to 4 per cent in the last few months, while the 2 BHK and 3 BHK housing demand has remained stable.
Residents in Ahmedabad prefer apartments and flats when compared to other residential categories, like, independent homes, villas or a residential plot and land. This transformation among people is attributed to rising land values in the last six to seven years. One has also seen the demand upsurge in the gated communities also, but the demand for this segment comes from the migrant population who had come to Ahmedabad for job opportunities and have settled down here.
Residential supply in city
Based on the recent study, the supply shows a different trend. There is an increase in supply in the larger units (3 BHK and 4 BHK) by 2 to 3 per cent and in premium housing units (price range – more than 1 crore and above) that has witnessed a rise in the supply by 25 per cent, while the demand is only for 7 per cent. The other segments remained stable in all budget categories.
This shows a clear mismatch in the demand and supply in the residential real estate for all housing categories. Today, it is important that to bridge this gap between demand and supply, there has to be proper focus on constructing more projects in affordable range with the support of PPP (Public Private Partnership).
Source : IndianHousing.Com, 25 Sep 2015