With Ahmedabad developers eagerly anticipating the launch of new schemes in both residential and commercial sectors in the city, a substantial growth in the realty sector in coming quarters is expected.
A burgeoning realty boom is on the horizon of Ahmedabad, especailly following the unchanged repo rate by the RBI.
Frank-NAREDCO Real Estate Sentiment Index for Q4 2023 (October-December 2023) reported that the current Sentiment Index Score (SIS) rose to 69 from the previous quarter’s score of 59.
According to Knight Frank, a score of 50 represents a neutral view or status quo; a score above 50 demonstrates positive sentiment, while a score below 50 indicates negative sentiment.
“The rise in the current SIS primarily stems from the strength of India’s economic landscape, marked by sustained GDP growth numbers and a controlled economic policy environment,” stated the Knight Frank report.
This has instilled confidence among real estate stakeholders as Indian enterprises, including those in the real estate sector, anticipate further gains from a flourishing domestic economy.
Commenting on the same, Chairman of NAREDCO Gujarat N K Patel said, “The recent Vibrant Gujarat event, announcement for Middle Income Group (MIG) in the union budget, and availability of land in Ahmedabad are some of the reasons for anticipating this positive boost in the realty sector.”
He added, “Moreover, post-Covid, there were few residential and hardly any commercial schemes launched in the city. But now the cycle has turned, and we will see new projects in both these segments due to the positive sentiments of developers, financial institutions, and potential buyers too.”
According to the report, the future SIS, which indicates stakeholders’ outlook, has also increased from 65 in Q3 2023 to 70 in Q4 2023, driven by general optimism about the Indian economy and sustained demand in the real estate sector.
The quarterly Knight Frank-NAREDCO report captures the current and future sentiments toward real estate sector, the economic climate, and funding availability as perceived by the supply-side stakeholders like developers and financial bodies.
CMD of Knight Frank India Shishir Baijal said, “The real estate sector has witnessed a notable phase of growth in recent quarters, with segments, including residential, office space, industrial, warehousing, and retail, demonstrating consistent progress.”
He added, “In 2023, residential sales reached a decade-high, driven by increased transactions in high-value properties. Even the commercial office sector experienced its second-best year, with 59.6 million sq ft of office space transactions.”
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