Last month, a report published by the Gujarat Estate Regulatory Authority (GujRERA) claimed that the number of residential units priced above Rs 1 crore and available for sale rose by 73% from 8,213 in 2022 compared to 4,735 units in 2021. Despite the economic downturn during the pandemic, the real estate market in the state continued to pick up.
The rise could be gauged by the housing finance disbursals which surged by 60% in fiscal year 2023 as opposed to FY 2022, a national daily reported. Citing data by the State Level Bankers’ Committee (SLBC), the report added that fresh home loan disbursals touched Rs 42,048 crore during the fiscal year, a jump from Rs 26,299 crore in the previous year. No wonder the dream to own a home is becoming a reality for many people in Gujarat.
Fresh home loan disbursals witnessed a substantial rise, going up from 2.73 lakhs to 4.26 lakhs during the year, a 56% increase, the report claimed.
The real estate upswing is attributed to positive sentiment among home buyers and the need to have a second property following the pandemic. The millennials are showing a keen interest in buying properties, especially salaried professionals who take loans to save taxes.
Additionally, investments in GIFT City have incentivised scores of young professionals to relocate to Ahmedabad and Gandhinagar, which has further contributed to growth in property in these areas.
It must be noted that the property prices in Ahmedabad have gone by 10-15% in the past year. In April 2022, the Confederation of Real Estate Developers’ Association of India (Credai) Ahmedabad chapter announced an increase of Rs 400-500 per square foot in Ahmedabad, followed by developers in other parts of the state, the daily said.
Despite the surge in property prices, home buyers continue to be upbeat.
In general, people living in cities like Vadodara, and Surat are seeking an upgraded lifestyle, with large sq. ft areas and better amenities like gyms, swimming pools and jogging parks.