A’bad realty rates rose by 16% in ’12? It Was stagnant during this period.

Ahmedabad: Indications of the figures released by the National Housing Bank (NHB) run counter to what Ahmedabad’s builders have been claiming about the state of the city’s property market. 

 

NHB figures show a 16% rise in property rates in Ahmedabad in the calendar year 2012 but realtors and consultants say the property market in the city has not witnessed major growth for the last two years. One builder went so far as to say that the market had stagnated in 2012 and had “bottomed out” in 2013. 

 

According to the property price index, Residex, growth in Ahmedabad is third highest in the country, with the city coming after Kochi and Patna. Kochi tops the list with 20% annual growth in property prices. Interestingly, Ahmedabad has beaten Delhi, Mumbai, Kolkata, Chennai, Pune, Bengaluru and other high-end markets in property price rise. 

 

The National Realtors Association (NAR) India, prepares the Residex on behalf of the NHB, on basis of the value of property transactions provided by the association members in different cities of the country, said Sachin Shroff, president-elect of NAR, India.

 

The NHB releases quarterly property price trends in 20 cities across the country. According to the Residex, Ahmedabad’s property price index stood at 164 points in the January-to-March quarter in 2012. 

 

This increased to 191 points in October-to-December 2012 quarter, showing a growth of 16%. Property prices in Surat on the other hand had grown only by 4.2% during the same period.

 

Builders and local real estate consultants, however, do not agree with the Residex results. They believe that the city’s real estate market has been stagnant for almost two years and has not witnessed any major growth. A leading real estate consultant of the city said that some properties at good locations with good amenities might have seen growth in prices but such properties cannot change the trend. 

 

Interestingly, Residex shows that Ahmedabad realty market appreciated only by 1.2% in the calendar year 2011. Jaxay Shah, national president of Confederation of Real Estate Developers Association of India (Credai), has a contrary view. He said that the local market was in good shape in 2011 and even in the first few months of 2012. 

“But the market has been stagnant since the latter half of 2012 and has bottomed out after Vibrant Gujarat Summit 2013,” said Shah. 

 

Rushabh Shah, president of Gujarat Institute of Housing and Estate Developers (GIHED), expressed similar views. He said that the market had not witnessed much movement in the last couple of years. The real estate market in the state is not in a good condition as investors have kept a distance from it, Shroff said.

Source : http://daily.bhaskar.com/article/GUJ-AHD-a---bad-realty-rates-rose-by-16-in----12-4204130-NOR.html