Real Estate Knight Frank Report – Ahmedabad sees a rise of 3% in sales in residential units in 2018, new launches drop 13%

Ahmedabad:

The real estate market in Ahmedabad, the largest city in Gujarat, has seen a rise of 4% in sales in residential sector during the second half (July-December) of 2018.

According to the Kinght Frank India Real Estate report covering 8 Indian cities including Ahmedabad released here today, “After a few dull years, Ahmedabad market has started to see a rise in the residential segment with sales of residential units moving up by 4% in the second half of 2018 as compared to H2, 2017 and up 3% during the year as a whole. However despite increase in sales the new launches have seen a drop of 2% in H2 and 13% during the whole year.”

The other seven cities covered in the report are Bengaluru, Hyderabad, Mumbai, Pune, Chennai, Kolkata and NCR (Delhi).

Balbirsingh Khalsa, Branch Director – Ahmedabad of Knight Frank said, “The growth in residential sector in Ahmedabad is led largely by sales in the affordable housing sector, ie properties below Rs 30 lakhs. Across the country too, majority launches have been in the categories below Rs 50 lakhs constituting over 60% of total launches. With residential inventories under control, Ahmedabad market in ready to show big improvement in new launches in 2019. In the city sales saw maximum rise of 47% in western region where interestingly new launches were 18% lower as compared to the second half of 2017. On yearly basis both saw rise of 23 and 69% respectively in the west region.”

In the North region sales and launches were 19% and 16% lower in H2 while for the whole year the figures were 15% low and 53% up respectively. For East zone the H2 figures were 11% low and 18% up for H2 and yearly 1% up and 27% down respectively. For South zone the sales and launches were for H2 were 9% up and 79% down while yearly 16% up and 80% down while in central zone for H2 these were 10% and 3400% (34 fold) up and yearly 4% lower and 1150% up as compared to corresponding periods of last year.

The commercial sector also demonstrated growth on account of heightened activities from investors and occupiers. The market operated on positive sentiments in 2018, which is expected to remain positive in 2019. In the office transaction activity the city has seen a rise of 74% in H2 while overall it was 29% lower during the whole year.

According to the report, the country as a whole has seen 119% rise in new launches in residential units in H2 and 76% rise through out the year. Sales figures were up 10% in H2 and 6% yearly. In office transaction space the pan India figures were up 12% for H2 and as much for the whole year.

DeshGujarat