Monthly Watch: New Launches Decline In Ahmedabad
After Prime Minister Narendra Modi announced a ban on high-value currency noted on November 8, consumers are seen exercising caution. As a result, major property markets across India remained slack — prospective buyers, as well as developers, have been awaiting new doles in the Union Budget. While things are likely to improve as Finance Minister Arun Jaitley announced a slew of measures to revive the sector, data show there has been an adverse impact of the demonetisation move in the short-term.
According to a PropTiger DataLabs report for December 2016, new project launches in Ahmedabad saw a monthly decline of 91 per cent while sales increased one per cent over November. A comparison of annual figures shows while new launches declined 96 per cent in December 2016 when compared to December 2016, sales dropped 51 per cent in the same period.
While property prices in the Gujarat city saw no monthly appreciation, there has been an annual increase of two per cent in property rates, the report shows.
Ready to roll
Developers who launched new projects in Ahmedabad in the month of December include Ghohari infrastructure, Lakshya Infrastructure and Swagat. While Ghohari infrastructure launched its project, Alif Apartment with seven units, at Sarkhej, Lakshya Infrastructure launched its project, Elite 18 Square with 15 units, at Navrangpura. While you can buy a unit at Alif Apartment for an average sq ft price of Rs 2,880, you have to pay Rs 6,110 per sq ft for buying a unit at Elite 18 Square. On the other hand, Swagat has launched its project Bagan Ville at Shilaj micro market. This project will have 33 units on sale at an average price of Rs 7,350 sq ft.
The bright spot
Among the localities that contributed the highest to monthly home sales in Ahmedabad were Gota, Bopal, Chandkheda and stretches along the SG Highway. All these localities offer buyers affordable housing options, with average property prices ranging between Rs 3,000 per sq ft and Rs 4,000 sq ft.