Influx of NRI investments and affordability to induce demand in Ahmedabad amid COVID slowdown, reveals Magicbricks Propindex Report Q2 2020

Ahmedabad has gained traction for affordable and mid segment housing segment over the years, but, was hit by the global pandemic and witnessed a slump in sales. However, the influx of NRI investments coupled with affordable housing schemes are enabling the the city pick up momentum in terms of sales, as per the latest Magicbricks Propindex Report Q2 2020.

The report further suggests that the Under-construction (UC) prices stood stable, as developers had little scope to cut prices amidst rising input costs and meek sentiment. To encourage housing demand, the state government considered a 1-3% cut in stamp duty and registration fees.

Price Decline due to COVID-19

Speaking on the consumer sentiment survey, Mr. Sudhir Pai, CEO, Magicbricks, said, “With return of NRIs to the country, there is an increase in their investments in Ahmedabad and the city is on  aroad to recovery from the impact of COVID 19. As the pandemic reaffirmed the importance of home ownership, the city witnessed higher concentration of residential demand within the affordable segment. The overall demand is moving to smaller apartment BHKs top the supply configurations. Although pricing was stable in the city, owing to the pandemic had noticeable 4 to 7.5% decline that impacted the demand.”

With new projects coming up in the city like Metro Rail, Mumbai-Ahmedabad Bullet Train, and Ahmedabad-Dholera Highway, the overall connectivity is expected to improvise altogether and spur residential growth while the newly approved Town planning is expected to drive urban infrastructure on the outskirts of the city.