Ahmedabad home sales up by 95% in first half of 2022: Report | Ahmedabad News

AHMEDABAD: There has been a a strong recovery in residential and commercial real estate in the city, with a 95% increase in residential sales in the first six months of this year, while office space demand increased by more than 200% compared to the same period last year.
A report by property consultant Knight Frank India states that 8,197 residential units were sold in Ahmedabad from January to June 2022, compared to 4,208 units in the first half of 2021.
According to the report, new home launches increased by 67% from 6,226 units in H1 2021 to 10,385 in H1 2022. The weighted average price of residential units in Ahmedabad increased moderately by 2.8% YoY to Rs 2,880 per sq foot. The market was India’s most affordable of the eight largest cities despite higher home loan rates, according to the Knight Frank India Affordability Index.
West and North Ahmedabad together accounted for 55% of sales in the city. Eastern markets such as Naroda, Vastral, Nikol, Kathwada Road and Odhav have started witnessing greater momentum, registering an increase in share of total sales from 19% in H1 2021 to 23% in H1 2022.
Balbirsingh Khalsa, executive director of Knight Frank said, “The shift in demand for units of the Rs 50 lakh to Rs 1 crore ticket size, from 22% in H1 2021 to 28% in H1 2022 has been significant. This trend has been observed across locations due to the need for upgrading primary family residences to accommodate changing lifestyles such as work and study from home. Units priced above Rs 1 crore also witnessed an increase in share of total sales, from 8% to 10%, in the same period. Conversely, there has been a decrease in the share of sales with ticket sizes less than Rs 50 lakh, from 70% in H1 2021 to 62% in H1 2022.”
Office space absorption are at their highest levels since H1 2015 with transaction volumes increasing by 202% to 1.3 million square feet in H1 2022 against 0.4 million square feet in H1 2021.
The average deal size also rose by 201% compared to last year. Office completion was reported to be 1.3 million square feet in the same period.
While the manufacturing sector remained the dominant occupant in the city, BFSI saw a considerable increase in its share of leasing.