Property in Ahmedabad Under the Crunch of Price Escalation
The real estate prices in Ahmedabad city have not seen much appreciation in 2013. Year, the current rates are not affordable enough for the property buyers. In spite of being a tier-II city, it carries an average per square feet rate ranging in 5000-6000/- in pricey localities. This psf gamut is extortionate for the middle-income groups. Compared to the tier-I Indian cities, the rates may seem to be lower, but the current prices are high-priced for most buyers. Cities like Satellite, Bodakdev, and Prahlad Nagar that carry hefty housing prices, are in the reach of only the uppermost strata of society. While an average buyer is unable to purchase a residential property rate in 35-40 lakh, their accessibility to high-end ones is only a dream.
According to Mukesh Kumar, area manager, GIC Housing Finance Ltd., property in Ahmedabad has appreciated, but the salaries of lower and middle-income brackets have not escalated accordingly. Though the Residex by NHB(National Housing Bank) in the city in Q3, Jul-Sep quarter has seen a marginal growth of only 6%, yet this swelling has proved too much for many buyers. The Residex last year during Jul-Sep quarter was 180, and in the corresponding period in 2013, it rose to 186.
As the Indian economy is burdened heavily with liquidity crunch, slashing down of rates is not possible. In light of such a scenario, the developers of Ahmedabad property have come up with several schemes under which they are offering the purchasers good discounts on every sale. In addition to freebies, some of them are ready to give slash down the prices as low as 30%. Such a huge depreciation is good for end-users. In West Ahmedabad, the residential properties are seeing some price correction. Areas like Bodakdev, Thaltej, Vastrapur, and several others have a situation of oversupply. With limited number of buyers, the prices have gone down. So, purchasing right now can be an advisable option. The price appreciation is one thing. The other factors that have balked city's real estate growth include lack of any concrete laws that could bring transparency in transactions, hefty land rates, and high number of irregularities.
It requires equal participation of authorities as well as developers to take the corrective measures, if the condition of buyers' market is to be ameliorated. Lately, some of the builders have come up with some unique ways of attracting customers: in addition to lowering the rates, they are now coming up with contemporary designs to allure them to into buying.
According to Mukesh Kumar, area manager, GIC Housing Finance Ltd., property in Ahmedabad has appreciated, but the salaries of lower and middle-income brackets have not escalated accordingly. Though the Residex by NHB(National Housing Bank) in the city in Q3, Jul-Sep quarter has seen a marginal growth of only 6%, yet this swelling has proved too much for many buyers. The Residex last year during Jul-Sep quarter was 180, and in the corresponding period in 2013, it rose to 186.
As the Indian economy is burdened heavily with liquidity crunch, slashing down of rates is not possible. In light of such a scenario, the developers of Ahmedabad property have come up with several schemes under which they are offering the purchasers good discounts on every sale. In addition to freebies, some of them are ready to give slash down the prices as low as 30%. Such a huge depreciation is good for end-users. In West Ahmedabad, the residential properties are seeing some price correction. Areas like Bodakdev, Thaltej, Vastrapur, and several others have a situation of oversupply. With limited number of buyers, the prices have gone down. So, purchasing right now can be an advisable option. The price appreciation is one thing. The other factors that have balked city's real estate growth include lack of any concrete laws that could bring transparency in transactions, hefty land rates, and high number of irregularities.
It requires equal participation of authorities as well as developers to take the corrective measures, if the condition of buyers' market is to be ameliorated. Lately, some of the builders have come up with some unique ways of attracting customers: in addition to lowering the rates, they are now coming up with contemporary designs to allure them to into buying.
