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While the gradual resumption of economic activities and increasing availability of the vaccine spurred market traction in the initial month of July 2021, the months following thereafter saw a dip in sentiment as buyers adopted a cautious approach amid the rising uncertainties around the third COVID-19 wave. As compared to the months of June and July 2021, property enquiries in both the primary and the resale market went down by almost 30 percent in August 2021. Similar to the quarters before, buyers attested their affinity for 2 BHK ready-to-move properties, measuring up to 1,200 sq ft in the sub-Rs 45 lakh budget bracket. The period between July and August 2021 witnessed a noticeable growth in RERA registrations and new launches. As against 52 projects in Apr-Jun 2021, around 81 projects, including both residential and commercial were registered with RERA in these two months. Given the increase in the new supply, unsold inventory in the city has gone up by almost 2,000 units to reach 12,000 units, located predominantly in the eastern and northern parts of the city. Together, these areas account for over 50 percent of the unsold residential stock.

Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, averred, “The quarter Jul-Sep 2021 witnessed a sharp resurgence in housing sales in most Indian metro cities. Spillover demand from the COVID-hit previous quarter, stimulators such as limited period stamp duty cut in some States, and fresh housing supply supported the growth. The first two quarters of the year recorded the sale of almost 1 lakh residential units across the country, with Q2 contributing most of it. Mumbai and Pune led the pack with maximum property registrations. Project launches from these two cities made almost 60% of the total new supply in top metros. All studied markets saw average property rates, in both new homes and resale segments, witnessing an upward movement between 1 and 3%, QoQ. In coherence, buyer responses on 99acres reported over 40% surge and owner listings on the platform grew by 102% in Jul-Sep 2021 against the previous quarter.”

Note: Rental Yield has been calculated for a 1,000 sq ft apartment. Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter.

The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments in the city.

Ahmedabad’s real estate market remained more or less stagnant in Jul-Sep 2021. While buyers have deferred their purchase decisions until the onset of festivities in the next quarter, the rental housing market witnessed postponement in shifting plans as companies pushed their return-to-office dates to 2022. With meek market sentiment, property prices across the city maintained the status quo.

Around 31 projects were launched in the months of July and August 2021, which includes commercial structures and residential projects having 100 units or more. The East and the West quadrants of the city accounted for over 80 percent of the fresh supply. The trend of increased interest in plotted developments towards the peripheries gained more steam in the studied quarter.

On the rental front, 2 BHK and 3 BHK properties, with rentals up to Rs 14,000 per month, continued to garner majority of interest from home seekers. While the month of July observed decent enquiries for rented accommodations, the month of August 2021 reported a slight dip in the number of queries. Shela, Shilaj, South Bopal, Makarba, Narol, and Naroda are some popular rental housing spots in the city.

Similar to the capital market, prices in the rental housing market, too, remained largely stable, except a miniscule hike in a few localities.