Ahmedabad

Over the last two-year price trend analysis indicates an average increase of 4.5% in property prices in Ahmedabad city, which is also known as the commercial capital of Gujarat, a study by real estate portal Magicbricks today said.

The city has however witnessed higher growth in rental values as compared to property prices. The rental values increased by 5%-10% per annum, the study claimed adding that of the all localities in the city, 52% saw an average property price increase of 2.5% while the remaining 48% saw an average drop of 4.8% during the last quarter.

The secondary/resale market in Ahmedabad constitutes majorly of lower segment housing inventory within the Rs 2,000–4,000 per sq ft segment (approximately 63%) and accounts for 56% consumer preference. Ahmedabad is one of the three cities across India where Ready-to-Move-in (RM) properties gathered a 3% premium over the Under Construction (UC) properties. The higher priced RM properties (Rs 2,000–4,000 per sq ft) are spread across 82% localities in the city. While the higher priced UC properties (Rs 4,000 per sq ft onwards) can be found in 75% localitie, the study said.

There was no difference in the Ahmedabad City Index from the previous quarter. Almost equal number of localities saw price increment and decline. An average increase of 2.5% was noted in 52% localities. A marginal jump of 5.7% was recorded in Bodakdev and Thaltej in the higher budget segment in the last two years. In the middle budget segment, a double digit jump was noted in Bopal and Vasna. A similar pattern was analyzed a year ago. The year 2014 saw only 2.7% price rise because most localities in the high preference bracket saw marginal movement in values, the study said.

It said that analysis of 42% localities in Ahmedabad showed that on an average, Under Construction (UC) properties were 3% more expensive than ‘Ready-to-Move-in’ (RM) properties. While the weighted average price of UC properties was Rs 4,308 per sq ft, the same for the RM property was Rs 4,185 per sq ft.

The study noted that In areas such as South Bopal, SG Highway, Chandkheda, Vasna and Gota, RM properties in the lower budget range of Rs 2,000–4,000 per sq ft are more expensive. Similarly, RM properties near Ahmedabad’s City Center which belong to the higher segments are more expensive than UC properties. RM properties have also seen more price growth than UC properties. While UC properties saw an increase of 0.3% over the 2 years, the price of RM properties grew by 6.4%. It has been noticed that RM properties in the suburban areas, where development has taken place, are more expensive than UC properties. On the other hand, UC properties in established areas with developed infrastructure are higher priced than the other.

– DeshGujarat