A report by Knight Frank India released on Wednesday revealed a robust recovery in the sale of houses in Ahmedabad, experiencing a remarkable 95 percent growth in the first half of the calendar year 2022. The residential real estate market’s sales volumes have nearly returned to the levels observed in pre-Covid 2019.
During the period from January to June this year, a total of 8,197 residential units were sold in the city, surpassing the 4,208 units sold in the same period in 2021. This surge occurred despite a 3 percent increase in the weighted average price of residential units.
Ahmedabad, known for its price sensitivity, maintained stable prices even with rising input costs for materials like steel and cement. Homebuyers, eager for buying opportunities in the city’s outskirts offering significant lifestyle upgrades, contributed to the increased sales. Plotted developments in gated communities continued to attract both homebuyers and investors, according to Balbir Singh Khalsa, executive director of Knight Frank India.
While Ahmedabad is considered a smaller market compared to larger metros, its sales growth for housing units in 2022 ranks second only to the National Capital Region, which saw a 154 percent increase. The report highlighted the drastic impact of the Covid pandemic on Ahmedabad’s residential market, with sales volumes plummeting 69 percent year-on-year in the first half of 2020. Since then, the market has steadily recovered, with sales volumes almost reaching pre-pandemic 2019 levels in the first half of 2022.
In addition to increased sales, the report noted a 67 percent surge in the number of new housing projects launched in the first half of the calendar year. Between January and June this year, 10,385 housing units were launched, compared to 6,226 units launched in 2021. Sales in North and West Ahmedabad contributed 55 percent, while Eastern markets such as Naroda, Vastral, Nikol, Kathwada Road, and Odhav accounted for 23 percent of the total sales.
