Half yearly residential real estate sales in Ahmedabad lowest in five years

Ahmedabad

The real estate scenario of residential market in all the major Indian cities was ‘bleak’ with Ahmedabad (including capital city of Gandhinagar) reporting its lowest ‘half yearly’ sales volume in last five years in calender year 2015, a study conducted by London based leading global property consultant Knight Frank released here today said.

‘The city has a total sales figure of 10472 residential units during January to June this year. It is the lowest half yearly sales since 2010. It is expected to go further low to an estimated around 8000 in the second half,’ Dr. Samantak Das, Chief Economist and National Director of the firm said while releasing the statistics of the study.

‘The total number of unsold residential property in the city was whooping 42000 which would take at least two to two and a half year to offload. The situation of the premium residential market (the properties worth over Rs. 1.5 crore) was even worse. Such inventory in the city would take at least five years for clearance,’ he said.

Citing the global economic scenario and the weak domestic sentiments for the crisis in the real state business, Mr. Das said Delhi was the worst affected in this regard while other major cities including Chennai, Kolkata, Hyderabad, Banglore, Mumbai were also suffering. However Pune was the only exception with some positive outcome.

Talking about various parts of Ahmedabad as concluded in the study, Mr. Das said, Northern (including areas of capital Gandhinagar) was the best performing market in the city with fastest rate of inventory clearance i e lowest age of unsold inventory. It was owing to the good connectivity of the locality with the major retail desitnations in West Ahmedabad, which itself is the worst performer. Eastern part of the city was the second best in this regard.’

Saying that any substantial increase in the residential properties in the city was not looking possible in the coming months, he said,’ the prospects of a double digit growth in prices remains bleak in Ahmedabad, as infrastructure development such as the Bus Rapid Transit System (BRTS), Sardar Patel Outer Ring Road and the under construction metro rail project will continue to make newer locations in the periphery of the city, with cheaper land rates, more accessible.’

‘central Ahmedabad is moderate while the southern part of the city was a little worse with regard to the age of the unsold residential inventory,’ he said.

– DeshGujarat