10 Frequently Asked Questions About Ahmedabad Real Estate Market
Every prospective homebuyer has a lot of questions on their mind when investing in a property in a specific locality. Is the project I am planning to invest in safe? Is the price right? Is the seller genuine? Will I get value for money in a slow market? All these questions would confuse you. PropGuide answers some of the frequently asked questions for homebuyers looking for investing in the Ahmedabad real estate.
Q: Which are the most popular real estate pockets of Ahmedabad?
Q: What is the average property price in Ahmedabad?
A homebuyer can purchase a 1BHK unit in the city for a starting price of Rs 17.50 lakh while 2BHK units will cost about Rs 33 lakh. The 3BHK units can command as much as Rs 72 lakh and 4BHK units can go up to Rs 1.74 crore. If you are looking for further higher configurations, average prices could go up to Rs 7.50 crore.
Q: What configuration and property type is most popular among homebuyers?
Apartments remain the preferred choice in most cities these days and it is true for Ahmedabad as well. According to data available with PropTiger DataLabs, there are over 1,600 projects for sale in Ahmedabad and over 1,100 of these projects are highrises.
As for the configuration, the 3BHK units are popular although 2BHKs are close second. Given the affordable prices in the city, homebuyers choose bigger configuration. However, you must make a decision based on your family size and needs. You must also align your decision with the fact whether you are going to use the house for yourself or as an investment expecting rental returns.
Q: Which are the best localities to buy a house in Ahmedabad if I am planning to put it on rent?
Business areas naturally fare well. For working professionals, Chandkheda, Motera, Sarkhej, areas near SG Highway, Thaltej and Vastral, are popular. There are over 11,400 properties on rent in Ahmedabad and the rental range varies between Rs 5,000 to Rs 1.50 lakh per month.
Q: Which are the best real estate developers in the Ahmedabad market?
Some of the reputed builders in the city include names like Adani, Sun Builders, Applewood Estates, Savvy Infrastructures, Godrej Properties, Pacifica Companies, Sheetal Infrastructure, Aaryan Builders, Addor Realty, Aroma Realties, Shagun Constructions, etc. It is advisable that you do a research on the track record of real estate developer in your city before an investment.
Q: What is the average rate of property in Ahmedabad real estate market?
On an average, property rates in the market stand at Rs 2,900 per sq ft but will vary across localities and projects depending upon what the seller is offering you. The exact location of the house, access to conveniences such as provision stores, hospitals, schools, job districts in the vicinity would mean that the unit stands a chance to be sold at a premium.
In April 2013, average prices stood at Rs 2,600 per sq ft which means prices have remained fairly stable since then. It is a good time to buy given that a prospective buyer has the price advantage. With real estate slump fading away, prices may spiral up in months to come.
Q: Should I opt for an under-construction apartment or a ready-to-move-in unit?
This would depend on whether or not you are looking at immediate end-use. More and more buyers have preferred ready-to-move-in flats in the recent years given the project delays. However, with an under-construction flat, you have the advantage of price economy. If you are confident about the completion schedule of a developer, an under-construction property could be good. In case you want to save up paying the equated monthly installments (EMIs) and rent at the same time, ready-to-move units could be good. Weigh your budget and make a suitable decision. Ready possession homes also have the advantage in terms that you would know what you are getting into unlike in the case of an under-construction unit.
There are over 320 under-construction projects and over 1,200 ready-to-move units in the Ahmedabad property market.
Q: How will RERA Ahmedabad help?
The Real Estate Law made sure that every Indian state (except Kashmir) should have a state real estate regulatory authority (RERA). Ahmedabad falls under the Gujarat RERA, the website of which became operational July this year. In the absence of a structured marketplace, the RERA aims to make home-buying simpler and transparent. The authority will display the details of project and developers on its website and homebuyers can make their decision.
It is also an enforcing authority. Recently, it passed a circular which made clear that defaulting developers would have to pay a penalty. It said, "Promoter/Developer who do not apply for the registration of their ongoing projects before 1/10/2017 will be required to pay a registration fee and a penalty equivalent to the registration fee for applications during the period from 1/10/2017 to 31/10/2017. From 1/11/2017 to 30/11/2017, the amount to be paid at the time of registration would be the registration fee plus two times registration fee as a penalty. This would not in any way reduce the element of liability in the event of other defaults including intentional delay in registration, false representation etc. For every application made on or after 1/10/2017, the promoters shall furnish a letter giving the details of reasons for the delay in the registration based on which Authority would be free to take a view on the liability.”
Such a provision would ensure that a developer is rolling out a legal and safe project into the market. Opt for a RERA-compliant project and a registered agent. As of date, 738 projects and 291 real estate agents have been registered with the Gujarat RERA. You can see the details here.
Q: Which are the affordable housing destinations in Ahmedabad?
If you are looking at a property within Rs 50 lakh, you could consider localities like Bopal, Chandkheda, Gota, Makarba, Sanathal, SG Highway, Shela and Thaltej.
Q: What about plotted developments in Ahmedabad?
If you are looking to invest in plots, there are over 100 different projects to choose from. The price ranges from Rs 4.6 lakh to Rs 72 lakh depending upon the size and location of the plot. You can look at Bavla, Bholad, Changodar, Dhokla, Dholera, Fedara, Kamiyala, Mandal, Mankol, Nalsarovar, Nava Naroda, Rethal, Sachana, Sanand, Shilaj and Vataman, for plots.