Ahmedabad sees average price rise of 4.5% in residential units

City is one of three in India where Ready-to-Move-in properties commanded a 3% premium over Under Construction

Over the two-year price trend analysis of the residential property market in Ahmedabad city indicates an average price increase of 4.5 per cent.

However, 52 per cent of all localities saw an average price increase of 2.5 per cent while the balance 48 per cent localities saw an average price drop of 4.8 per cent in the Oct-Dec 2015 quarter, as per the Magicbricks PropIndex Report.

According to the report, Ahmedabad is one of the three cities across India where Ready-to-Move-in (RM) properties commanded a three per cent premium over the Under Construction (UC) properties. RM properties have also seen more price growth than UC properties. While UC properties saw an increase of 0.3 per cent over the 2+ years, the price of RM properties grew by 6.4 per cent.

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Speaking on the same, E Jayashree Kurup, Head of Content & Research, Magicbricks said, "Despite slow market conditions, there is ample demand, as is clear from the steady and consistent search volumes on Magicbricks. However, the demand is stronger for Ready-to-Move-in properties rather than Under Construction properties, indicating lack of consumer confidence. As a result, secondary market transactions have become the norm with consumers opting to pay a higher value to immediately get usable property."

Meanwhile, rental values in Ahmedabad witnessed comparatively higher growth than capital values. The rental values increased by 5-10 per cent per annum. The yield numbers have been used to evaluate the affordability of each location. Affordability is defined as the ratio of Equated Monthly Instalment (EMI) to prevalent monthly rental.

"The handling of credibility issues regarding timely deliveries will regain the lost faith and win the confidence of home buyers," Kurup added.