For the last three years, Siddhi Developers has been struggling to sell a 72-unit-luxury-home-project on the SG Highway. The sales especially after Diwali last year were the poorest, where the real-estate developer Deepak Patel managed to sell only three units, each costing over Rs 1.25 crore. However, during the last two months, Patel has started feeling the whiff in sales.
“The six months after Diwali (2015), I have been able to sell only two apartments in the project. However, in the last two months alone, I have sold about eight apartments. Not only has the sales of luxury homes gone up, but even their prices have shot up this year,” Patel told media.
During January-June 2016, the “luxurious” housing segment – priced Rs one crore and above – in Ahmedabad has seen a price rise of nine percent, which is the highest growth rate clocked in any of the top eight cities of the country. Though Ahmedabad is a much smaller housing market compared to other metros, a recent study by global consultants Knight Frank points out the growth of prices in the premium segment in other cities failed to match up to Ahmedabad. For instance, during the first six months of 2016, the prices of luxury homes declined in National Capital Region (by five percent) and Bangalore (one percent), it stagnated in Mumbai, while the growth rate was 8-3 percent in other metros like Chennai, Hyderabad and Kolkata.
In fact, though developers in Ahmedabad have been selling only 500-odd units every six month, it is the prices of these luxury homes that have kept everybody interested. Luxury homes that used to cost around Rs 3,637 per square feet in the first half of calendar year 2010, has risen to Rs 5,585 in 2016. This price rise has happened despite 2013 and 2014 being lackluster. “Since 2010, premium segment prices have gone up by more than 50 percent, whereas the city’s average price (of homes) has moved up by only 27 percent. Steady demand and a limited supply have helped prices in the premium segment to move in this manner,” stated a recent report by Knight Frank.
Balbirsingh Khalsa, Branch Director-Ahmedabad, Knight Frank (India) Pvt Ltd., says that during the last six years, both Western Ahmedabad (consisting of areas like Ambli, Bodakdev, Jodhpur, Prahlad Nagar, Satellite, Thaltej, Vastrapur) and Central ( incorporating areas of Ambawadi, Navrangpura, Shahibaug, Nehru Nagar) have become a hub of luxury housing in Ahmedabad. “About 80 percent of the premium segment houses in Ahmedabad matches Mumbai and Delhi as far as facilities are concerned. Customisation of your flat/property is also an added advantage in premium segment housing in Ahmedabad. The only difference in Ahmedabad is that the premium segment projects have 50-100 units, while in cities like Mumbai and Delhi it is 500-plus and so facilities and amenities are more enhanced,” Khalsa says while talking about the range of facilities being provided by real estate developers.
Arvind Infrastructure that is selling luxury villas priced Rs 2-10 crore at Nasmed village on the western outskirts of Ahmedabad city has sold off almost 50 percent of the 300 villas it launched in the first phase about eight months ago. “If you can enthuse people with your offerings then their are buyers in this segment. We have sold almost 40-50 percent of the first phase of our township project, Uplands,” says Kamal Singal, MD and CEO of Arvind Infrastructure, a sister concern of the textile group Arvind Ltd, that is offering Disney-themed homes for the customers in the city.
“There is a lot of interest for homes in the Rs 2.5-5 crore segment, most of which are apartments. Of the 200-odd ongoing projects in Ahmedabad-West area, about 150 of them are those selling Rs one crore-plus apartment. Most of these projects are between SG Highway and Shilaj areas,” said Deepak Patel, who is also the president of Gujarat Institute of Housing and Estate Developers (GIHED), a city-based body of developers.
According to GIHED, most of these houses were being bought by affluent people who wanted to shift from eastern part of the city to the west, while “20 percent of the buyers” were those migrating to the state from other metro towns. These luxurious apartments have a built-up area of 2100-6000 square feet and some of them are “by invitation projects”.
Credits Indian Express