South Korea caused biggest drop in home sales in Ahmedabad in 10 years, with home sales falling 61%
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Ahmedabad 4 days ago
Corona made the real estate market worse in 2020. Real estate consultant Knight Frank India recently compiled a report on the real estate market in major cities across the country and, according to the report, home sales fell 61% in 2020, the most sharp decline over the past 10 years. Likewise, the launch of new housing projects also fell by 36%. However, the good thing for the real estate sector is that the industry started to recover slightly in the fourth quarter of 2020. Balbir Singh Khalsa, country manager of Knight Frank, said that although Ahmedabad is a very affordable market compared to in the eight main cities, residential demand has been negatively affected due to unemployment and potential income instability.
In 2020, only 6,506 homes were sold
According to a report by Knight Frank, 16,713 homes were sold in Ahmedabad in 2019 compared to 6,506 new homes sold in 2020. During the half-yearly period from January to June, 2,520 homes were sold while 3,986 homes were sold in July-December. Balbir Singh Khalsa said the fourth quarter of the year saw a strong improvement due to the resumption of business activities, falling mortgage rates and aggressive negotiations by developers. Home sales increased 67% between October and December.
Sale of houses in Ahmedabad in semester
Year-January-June-December 2016 85567400201779417800201880878101201982128501202025203986
Reference: Knight Frank India
New home launches have dropped significantly
According to the report, 11,487 new houses were built in Ahmedabad in 2019 compared to 7,372 houses launched in 2020. During the crown lockdown, only 2,627 units of new houses were launched between January and June, compared to 4,745 units in July-December .
Key points of the report
While 7,372 units were launched in Ahmedabad, 6,506 home sales were recorded in 2020. In the second phase of 2020, the price of residential products in the city fell 3% year on year to Rs. 30,215 / m2 (Rs. 2807 / square feet). Aggressive negotiations between developers to curb the fall in sales were responsible. Below the banknote size of Rs 50 lakh, the demand for which has always been observed in Ahmedabad, its share was 69% in the second phase of 2020. While Rs. 2-5 to Rs. The sub-segment of 25 lakh accounted for 43% of total sales, while properties sold in ticket sizes less than 25 lakh accounted for around 26%. In the second phase of 2020, 34% of total sales were in the northern area. Places like Nana Chiloda, New Ranip, Gota and Chandkheda, with a strong focus on affordable products, have attracted people, especially the working class population. 24% of total sales during this period Like South Bopal, Shela, Thaltej due to rapid development of social infrastructure and improvement of road connectivity on Science City Road In terms of launches, 66% of total new launches cost Rs .50 lakh in ticket size and Rs. 25 lakh With 50 lakh ticket sizes, 44% of total launches were recorded in the second phase of 2020, while 5% of launches cost Rs. 75 lakh to crore Rs 1. Unsold inventory has declined by around 67% since 2017 as developers made conscious efforts to reduce existing inventory. This led to a decline in the pre-sale quarter (QTS) level relative to stable sales, and unsold inventory levels were reduced from 3.7 in the first quarter of 2017 to 3.6 quarters.