Ahmedabad Homes Sales Hit Five years Low, Dip In Migration
During 2017, developers in Ahmedabad sold just 15,741 residential units. This is a decade low homes sales for the market in the city, that saw over 30577 housing units being sold in 2012. Experts point to a reduction in migration as one of the key reasons for the poor demand for homes in the biggest city of Gujarat.
Since 2012, the sales of homes have steadily declined. By the year 2016 the home sales hit a low of 15,956 housing units and in 2017 it plummeted further clocking a decline of 48 percent compared to the sales figures registered five years ago, state a recent report by global consultants Knight Frank.
The demand for homes in Ahmedabad has been on steady decline for the past five years. It is possible that the migration to the city has reduced or people are finding it difficult to make a purchase in the current market conditions, says director-Ahmedabad, Knight Frank.
Similar views were expressed by real-estate developers. Developer Siddhi Group says, their homes sales have fallen by 50 percent compared to that in 2012. A major reason for this is that people coming from outside the state in search of jobs have dipped drastically. The industrial growth witnessed during the last decade has slowed down and this has impacted their business too.
Most of the homes sales that have happened in Ahmedabad are those priced Rs 50 lakh or lesser. The affinity of homebuyers towards affordable housing projects is very evident in Ahmedabad, states the Knight Frank report while adding that the residential markets in East (comprising of areas like Naroda, Vastral and Odhav) and North Ahmedabad (Gota, New Ranip, Motera and Chandkheda) witnessed close to 60 percent of the sales during the entire calendar year of 2017.
Real-estate developers have tried to counter the poor sales by reducing the number of new launches. This has helped in controlling the number of unsold inventory in the city. At present, the city has more than 26,800 unsold housing units which are at various stages of construction.
As far as new launches of housing projects are concerned, 2017 saw only 4790 new units being launched. This is 66 percent less than 2016 and is a far cry from 45,120 new units launched during the calendar year 2011. Five years back, most of the developers had at least 5-6 residential schemes. Today, there is hardly anybody who handles so many projects together.
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