For the first time in 5 years, Ahmedabad has recorded its lowest ever sales in real estate. Currently there are approximately 42,000 brand new constructed home with absolutely no takers that are piling up on the inventory list. 12000 of these homes are located in West Ahmedabad and 13,400 are in East Ahmedabad and show no signs of possible sales.
According to leading experts, these flats in Ahmedabad could take over three years to see a sale. The next couple of years are crucial to try and offload the existing property inventory in the city. The western part of the city has seen no sales from the inventory volume for the last 3 years whereas the sales in the east and the north have been idle for almost 2 years now. In the last 6 months alone, Ahmedabad has recorded the lowest sales volume in the last 5 years. In the first half of 2015, sales dipped by 26% in comparison to the first half of the previous year.
Authorities and developers are curbing the launch of new projects in Ahmedabad and are instead focusing on clearing the current inventory. Of this, East Ahmedabad has proven to be most affordable among other regions which indicate a property rate of Rs, 3000 per square feet. However this locality has seen maximum number of new projects in the past year.
One of the factors affecting the sale of property in Ahmedabad is the dormant infrastructural development. The necessary redevelopments that should have been done to keep pace with the times have not been completed and as a result, people are opting to stay away from the real estate market. The lack of price hike has also resulted in lowered sale of residential units.
Once upon a time in the 1980’s and 90’s, Ahmedabad was a commercial hub and there was a rapid rise in prices. During this time, Ahmedabad real estate saw quite a gain in profits. However in the past few years, due to the lack of price rise, investors are staying away from this market. As a result, there are plenty of vacant home, just waiting to be purchased in Ahmedabad.
The only way experts see the Ahmedabad real estate market flourishing again is with the development of infrastructure. Even if private developers do their part, there may be the possibility of reviving the lost sales.