With Luxury Homes Taking Lead, Is Ahmedabad Another Noida In The Making?

Irrespective of slow sales across the country, real estate market of Ahmedabad is booming. The home buyers in Ahmedabad are investing in homes in the luxury and premium segment.

Even as the city's total number of newly launched units dropped by 46 per cent in Q2'FY16, among those launched, a generous share is in the luxury segment. The price range of homes that are now being constructed are higher in value. The value of homes has gone up by 2.9 per cent when compared to Q2'FY15, according to Realty Decoder - Q2'FY16 released by the Data Labs division of PropTiger.com.

More high-end projects

The rise in property prices in Ahmedabad is attributed mostly to three new luxury projects - Jewel Residency at Ambli Road, Floris 41 at Satellite and Sun Evoq at Bokadev. Over 11 per cent of the new launches are in these three projects. Most of these residences are priced between Rs 6,000-Rs 7,000/sq ft and sized between 4,000-6,000 sq ft, taking the cost of each unit to Rs 3 crore-Rs 4.2 crore.

These projects boast of high-end features such as concealed plumbing and bathroom fittings, modular kitchens, premium vitrified tiles, quartz granite stones, teakwood doors, spacious, and airy ceilings. The outdoors are designed with compound walls, lush green surroundings, water bodies and boulevards.

Most of these high-end homes are in Prahaladnagar, Bokadev, Paldi, Ambli Road, Ellis Bridge, Drive-in Road and Shilaj. With the sheer abundance of high-end homes, Ahmedabad, which is an emerging real estate market, might soon rival Noida, known for luxurious homes, and become a go-to destination for home buyers with a preference for high-end lifestyle.

Where is the demand coming from?

There are two types of home buyers who prefer luxury homes in Ahmedabad. First, working couples and mid-level executives, who have a preference for contemporary homes in the premium segment. Second is Non-Resident Indians (NRI), especially people from the Gujarati community. A majority of NRIs, who buy homes in Ahmedabad, prefer buying it for their families, while others buy for investment purpose.

The Q2'FY16 report also indicates that in the unsold inventory, the share of properties that are in the luxury segment (units priced above Rs 1 crore) have a small share of around 14 per cent. The highest inventory overhang is in the affordable category (units priced below Rs 50 lakh), indicating that the city's super-rich are steadily buying homes, even as sales from the other end are low.