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AHMEDABADRESIDENTIAL MARKET UPDATE

INSITE

JULY-SEPTEMBER 2019

Market Sentiment

Maneesh Upadhyaya Chief Business Officer99acres.com

FROM CBO’S DESK

provide financing to the many stalled affordable and mid-income housing projects in the country cheered the market. The Government will contribute Rs 10,000 crore, which is anticipated to benefit around 350,000 housing units. Further, consecutive repo rate cuts and the mandate around repo rate linked home loans are seen as housing demand lifters. The impact of these policy announcements will be more evident in the ensuing festive quarters.

With the news of an impending economic slowdown clouding the market, end-user and investor activity plunged evidently in residential real estate in Jul-Sep 2019. This clubbed with multiple insolvency proceedings and the on-going financial crunch that most developers are struggling with kept overall sentiment submissive. Average weighted prices of residential apartments witnessed meager alterations quarter on quarter, barring Hyderabad and Ahmedabad. Rentals, too, grew insignificantly in the last one year. An inventory overhang of 10 lakh units along with 5.6 lakh delayed homes across the country kept price points under check. On the supply front, the top eight metros saw the launch of around 486 housing projects in Jul-Sep 2019, about 30 percent down from Apr-Jun 2019.

While the quarter did not have many laurels to talk about, the Finance Minister’s announcement regarding the creation of a special fund to

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MARKET INDICATORS

* Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com

Capital ValuesRental Values

Supply

DELHI NCR

KOLKATA

CHENNAI

HYDERABAD

BANGALORE

AHMEDABAD

MUMBAI

PUNE

NATIONAL OUTLOOK

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PROPERTY PRICES Metro cities witnessed marginal upticks in property prices. Hyderabad and Ahmedabad took lead with a two percent surge, QoQ. A few good deals in certain popular housing hubs contributed to the said price hike. The industry does not foresee any major deviations in the prices of new or ready residential stock in the ensuing quarters, too.

HOME BUYING SENTIMENT Home buying sentiment remained weak due to developer defaults and the NBFC crisis, which dried up funding and slowed the completion of already delayed projects. Around 5.6 lakh residential projects are reportedly stalled across the country. Developers, nevertheless, anticipate the festive season to lift housing demand up.

RENTAL LANDSCAPE Rental ‘asks’ grew by an average of 2-3 percent across metros, YoY. The segment is expected to benefit from the prolonged caution exercised by homebuyers. Rental hubs along transit corridors are expected to see better demand and surging ‘rates’ in the next couple of quarters. Co-living is fast emerging as a trend, especially in Bangalore, Hyderabad and Mumbai.

SUPPLY Metro cities witnessed the launch of around 486 projects in Jul-Sep 2019, a 33 percent dip versus Apr-Jun 2019. Economic slowdown and liquidity crunch forced builders to hold back new launches. Government’s efforts to boost the Public Sector Banks and NBFCs by injecting funds worth Rs 1 lakh crore may propel housing supply in the forthcoming quarters.

SupplyDemand

Localities Jul-Sep 2019 QoQ % Change YoY % Change

Jodhpur 5,220 - 6,330 2% 5%

South Bopal 3,520 - 4,460 3% 8%

Chandkheda 3,230 - 3,690 4% 8%

Naroda 2,250 - 2,720 2% 5%

New Ranip 3,230 - 3,570 2% 6%

Ghatlodia 3,480 - 4,200 4% 5%

Maninagar 3,400 - 4,250 -2% 1%

Naranpura 4,280 - 5,490 4% 5%

Bodakdev 5,520 - 6,920 2% 3%

Paldi 4,500 - 5,660 0% -2%

AHMEDABAD’S REALTY AT A GLANCE

Property Prices

Rental‘Asks’

* Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

Price movement in key micro-markets

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com

7INSITE : AHMEDABAD

The price-sensitive real estate market of Ahmedabad witnessed the launch of around 41 new projects in Jul-Sep 2019, the majority of which fell in the affordable segment. Not surprisingly, over 75 percent of buyer demand inclined towards 2 BHK and 3 BHK units, priced within Rs 50 lakh. Apartments priced above Rs 1 crore continued vying for buyers. With an unsold inventory of 9,000 flats, the average quarters to sell (QTS) stand at 2.5. While new projects failed to garner traction, the resale market continued getting buyers’ attention.

Noticeably, the average weighted prices of residential apartments went up by two percent, QoQ. Resale transactions in popular micro-markets of Gota, Chandkheda, South Bopal, and Bopal, among others, remained the major growth drivers. These localities saw average prices of residential apartments surging by 2-5 percent, each, QoQ.

As the festive quarter begins, the real estate market of Ahmedabad depends heavily on the effective implementation of repo rate cuts by lending institutions and quick progress towards construction of the houses approved under Pradhan Mantri Awas Yojana (PMAY). This, along with the increase in the Floor Space Index (FSI) with special FSI for landmark buildings, might also bring down the cost of residential and commercial projects in the city, further softening prices and propelling demand. New project launches are expected to be low-key in the quarters to come.

29%

41%

30%

56%

29%

15%

Luxury Housing

Affordable Housing

Mid-income Housing

Demand Supply

acres99India’s No.1 Property PortalDEMAND & SUPPLY

DYNAMICS

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter

99ACRES’ OUTLOOK

9INSITE : AHMEDABAD 9INSITE : AHMEDABAD

Almost one-third of the tracked localities in Ahmedabad saw average ‘ask’ prices of residential apartments surging by 3-5 percent, each, in Jul-Sep 2019. Localities in the East and around SG Highway garnered maximum buyer traction. Areas such as Gota, Vastral, and Chandlodia emerged as the bellwethers with a five percent hike in the average capital values, each, QoQ. While Gota is a delight for affordable home seekers, with ample supply of apartments within Rs 30-50 lakh, Vastral, too, brims with competitively priced units and projects from known developers.

Select areas in the West such as Vasna and Naranpura, too, reported a surge of four percent in the average ‘asks’, each, QoQ. While Naranpura is an established residential locale, Vasna has gained prominence as the gateway of business and retail spaces in Ahmedabad. Average property values in Vasna hover around Rs 3,500-4,500 per sq ft.

Housing a number of projects from Grade A developers and boasting of proximity to Prahladnagar, South Bopal recorded an appreciation of three percent in the capital values, QoQ.

The rental market reported a three percent increase in the average ‘asks’, YoY. Of all, Kudasan and New Ranip continued to be the best performing locales. The localities recorded a noticeable surge of seven percent in the average rental rates, each, YoY. Proximity to Gandhinagar and affordable rentals as compared to other prominent localities such as Bodakdev, Satellite, and Vastrapur drive healthy traction to these localities. While a 2 BHK in Kudasan is available for Rs 9,000-12,000 per month, a similar unit in New Ranip can be rented for Rs 7,000-8,000 per month.

CAPITAL &RENTAL

3%

5%

1%

4%

1%

2%

1%

2% 2%

-2%

0%

4% 4%

6%

4%

-1%

4%

-2% -2%Capital

South Bopal Gota Jagatpur Chandkheda Bodakdev Thaltej Vastrapur Bopal

Maninagar

Prahlad Nagar

Rental

KEY HIGHLIGHTS

* %change represents quarterly capital movement and yearly rental movement

4%

11INSITE : AHMEDABAD

-6%

-5%

CONCLUDING REMARKSThe residential demand in Ahmedabad continued seeing improvement, QoQ, positively impacting sales, especially in the resale segment. Infrastructure projects such as APMC-Shreyas corridor, which will be operational by 2020, and the six-laning of SG Highway are seen as major growth propellers for the real estate industry in the city.

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37%

15%12%

11%

10%

8%

4%

3%

MUMBAI

BANGALOREPUNE

HYDERABAD

CHENNAI

AHMEDABADDELHI NCR

KOLKATA

Affordable Housing

Mid-income Housing

Luxury Housing

Demand Supply

DELHI NCR

33%

30%

37%

45%

31%

24%

Demand Supply

MUMBAIDemand Supply

BANGALOREDemand Supply

PUNEDemand Supply

CHENNAIDemand Supply

HYDERABADDemand Supply

AHMEDABADDemand Supply

KOLKATA

30%

31%

39%

46%

37%

17%

24%

39%

36%

34%

50%

16%

15%

36%

49%

21%

53%

26%

19%

26%

55%

21%

39%

40%

14%

33%

53%

22%

35%

43%

15%

29%

56%

30%

41%

29%

7%

18%

75%

15%

39%

46%

* Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter

The data depicts share of new launches across metro cities in the studied quarter

BUDGET-WISE DEMAND & SUPPLY

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ANNEXURES

CAPITAL VALUES

Locality Jul-Sep 2019

Bapunagar 3400

Bodakdev 6200

Bopal 3700

Chandkheda 3200

Chandlodia 3560

Ghatlodia 4100

Gota 3650

Gurukul 5000

Jagatpur 3650

Jodhpur 6220

Makarba 4100

Maninagar 4000

Motera 3700

Naranpura 5300

Narol 2100

Navrangpura 5900

New Ranip 3300

Nikol 2550

Paldi 5500

Prahlad Nagar 5750

Ramdev Nagar 5760

Sabarmati 3000

Satellite 6000

Science City 5500

Shahibaug 6900

Shela 3500

Shilaj 3900

South Bopal 4200

Thaltej 5500

Vaishnodevi Circle 4000

Vasna 4380

Vastral 2550

Vastrapur 5600

Vatva 2000

Vejalpur 3700

Ambawadi 16

Anand Nagar 15

Bodakdev 16

Bopal 12

Chandkheda 9

Chandlodia 10

Ghatlodia 10

Gota 9

Gurukul 14

Jagatpur 8

Jivraj Park 12

Jodhpur 15

Kudasan 8

Makarba 15

Maninagar 13

Memnagar 15

Motera 9

Naranpura 14

Navrangpura 16

Nehru Nagar 17

New Ranip 8

Paldi 15

Prahlad Nagar 17

Ramdev Nagar 15

Sargasan 7

Satellite 15

Science City 11

Sola 11

South Bopal 13

Thaltej 15

Vaishnodevi Circle 10

Vasna 12

Vastrapur 16

Vejalpur 13

Locality Jul-Sep 2019

RENTAL VALUES

CONTACT US0120 4879400Monday - Friday9:30 AM to 6:30 PM ISTEmail: content@99acres.com

The Insite Report by 99acres.com captures the quarterly capital

trends and the annual rental analysis of residential apartments

in key real estate markets – Delhi NCR, Mumbai Metropolitan

Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata

and Ahmedabad. In order to assess the prevailing sentiment, the

report delves deep into demand and supply of properties across

varied budget segments and occupancy stages. While demand

is a function of queries received, supply is based on property

listings posted on 99acres.com in Jul-Sep 2019.

METHODOLOGY

CONTACT US0120 4879400

Monday - Friday9:30 AM to 6:30 PM IST

Email: content@99acres.com

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*All prices are per sq ft rates

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