The real estate industry in the state is expected to witness an upturn following a slow phase, especially after the Akha Trij festival. However, despite the optimistic outlook, industry experts predict a decline in the number of projects launched during the event.
According to Viral Shah, the secretary of Credai Ahmedabad, the Akha Trij festival usually sees a surge in bookings for the real estate sector. Shah expects the affordable housing segment to witness a boost in bookings from buyers who had been previously uncertain due to the Jantri revision exercise. While there were inquiries for properties, bookings were low as many people focused on completing older transactions after the state government delayed the implementation of the revised Jantri rate. However, with confirmed bookings for Akha Trij, developers are optimistic that the sector will regain momentum.
The real estate market in Ahmedabad experienced a surge in demand following the subsiding of the Covid-19 pandemic, particularly in the sector of larger homes and projects with enhanced amenities. The demand for luxury housing and plotted developments also saw an uptick. However, industry experts have observed that overall demand in the past six months has been weaker than in the preceding two years, which has been attributed to the escalation of costs and interest rates.
According to Praveen Bavadiya, a property consultant, the tradition of launching new projects on Akha Trij has seen a reduction in the number of inaugurations this year. This could be attributed to the numerous projects that were launched since Diwali, primarily in the affordable segment. Bavadiya also noted that the demand for properties is currently low, which could be attributed to the high supply of properties in recent years as well as increased property prices.
Bavadiya highlighted that in the past year, interest rates have significantly risen, leading to a decrease in affordability for salaried customers.
The increase in interest rates has adversely impacted sales in the affordable segment, leading to many potential customers postponing their decision to purchase a house. However, Bavadiya also mentioned that the clarity on the Jantri situation is a positive development. Moreover, inflation data indicates that interest rates may not witness further increases, providing hope for a potential boost in the market from Akha Trij onwards.
© 2023 Rera News. All rights reserved.