NRI real estate investors contemplating property investment in Ahmedabad can expect “growth” – in every sense of the word.
Over the past three to four years, Ahmedabad has developed from being a primarily industrial area to one of the most business-oriented and diverse municipalities in India.
Hailed as one of the “fastest growing cities in the world” by Forbes in 2010, Ahmedabad is set for a population increase expected to bring the total number of inhabitants to over 7.6 million by 2025. From the textile to automotive and financial industries, there are numerous opportunities for jobs that are bringing people into Ahmedabad, and subsequently creating a strong demand for affordable housing here. The government expects the GDP to grow by 6.0-6.5 per cent in 2014, and there are also plans in place to improve the SG Highway and Ahmedabad Municipal Transport Services, both of which are set to contribute to the demand for accommodation.
A strong outlook predicted for Ahmedabad
Home prices have remained steady over the past year, impressive given the volatility that has negatively impacted other markets. Prior to then, prices were appreciating between 20-25 per cent annually, and a return to these sorts of rates can be expected later in the year as the Ahmedabad real estate market recovers. Ahmedabad has long been a popular market for real estate investors, and as such, the competition is fierce. It’s estimated that as much as 60 per cent of activity is carried out by investors, meaning those that are eyeing a real estate investment in Ahmedabad should be prepared to adopt an aggressive acquisition strategy.
As of Q1/2014, the average rent for an apartment in central Ahmedabad is around Rs 20,-000-45,000 per month, with the average capital value for the same period coming in at RS 5,500-8,000 per sq. ft. Demand for affordable housing is high, especially in up-and-coming areas such as Makarba, Ranip and Amraiwadi. There were an estimated 2,300 new units launched in the city in the first quarter of 2014, with 45 per cent of those units being in the affordable sector. According to research compiled by Cushman & Wakeman, both rental and appreciation rates are expected to remain stable in the forthcoming months, with improvement expected in the latter part of 2014 as the residential market gains strength.
Between a strong economy, high levels of employment, planned improvements to infrastructure and ample demand for housing, there are many reasons NRI real estate investors would benefit from buying now in Ahmedabad.
Are you thinking about investing in Ahmedabad? Follow the Unesta team @UnestaRealty to keep up to date with all the latest Indian property developments, market news and opinion.