Gujarat realty market is experiencing more demand in the affordable price bracket than the premium segment. Tier-II cities such as Surat, Vadodara and Rajkot are also seeing growth in the real estate sector apart from Ahmedabad. Growing infrastructure, connectivity and other initiatives by state government as well as private entities has led to rising demand and supply in these cities.
Residential projects in the affordable brackets of Rs 10-20 lakh are easy to invest than the ones involving huge investments, as told by local resident and investor, Mayur Jain. There is a niche segment in the city looking for affordable housing options such as apartments and plots and since these are developing cities there is more demand for properties with a low budget, according to Ashwin Kumar, city-based realtor.
In Gujarat, there are emerging affordable hubs offering low budget properties to the end-users. Areas such as Sarkhej, Gandhinagar Highway are some of the upcoming locations fetching attention of both, buyers and investors. Greenwood Sarovar Village is an upcoming residential project located at Sarkhej Gandhinagar Highway which is a 30-minute drive from Gandhinagar Expressway. Here an individual can get 200-250 sq yard plots starting from price range of Rs 8.75 lakh.
There is another upcoming affordable housing project by Tata Housing, located nearly 20 kms from Ahmedabad city centre. The integrated township, known as ‘Shubh Griha’, is available from starting price of Rs 8 lakh.
According to Suresh Iyer from Sterling Greenwoods Limited, “Affordable projects are witnessing good number of transactions than the premium projects. Therefore, most of the developers and builders are launching their new projects in the affordable price range only to meet the demand and are witnessing fair number of transactions.”
Capital values of apartments in the affordable category have noted an average appreciation of 10-15% in the past 6 months, as added by Kumar.
Buyers are buying these properties either for self-use or for investment purpose. Rising demand and transactions is contributing to the value appreciation and this trend is expected to continue, as anticipated by city brokers.