AHMEDABAD: Statistics show that Gujarat witnessed 6 per cent growth in property prices in last one year and the property price index in the state remained volatile. However, what the statistics does not reveal is the fact that during the same period, many of the cities that National Housing Bank’s Residex tracked down, did witness either no change or downward change. Out of the 26 cities that it covered across the country, only 12 cities witnessed marginal appreciation, and two cities of Gujarat-Ahmedabad and Surat, registered 6 per cent and 5 per cent growth respectively. More importantly, the transaction rate in the cities of Gujarat did not dip. This reflects that the property markets of Gujarat have been moving, even though the pace of movement was slow.
Analysts tracking the market at ground zero seem to be bullish on the prospects of Gujarat real estate market. They maintain that moderate property appreciation is actually indicative of the market’s resilience and the fact that speculative buying is not happening in this part of the world. This also means that the entry point is extremely attractive for the end-users and the right time is now. After all, the state has seen a booming rise of big infrastructures, and industrial projects are coming up at a rapid pace. These factors definitely contribute in ensuring good returns on property investment. Further, the fundamentals of the property market are quite grounded to realism a cross the cities of Ahmedabad, Vadodara and Surat.
Dhaval Ajmera, director, Ajmera Realty & Infra asserts that this is the right time to buy property in Gujarat. He says, “Gujarat as a state has seen remarkable growth in various verticals, real estate being one of them, which also is indicative of a healthy economic activity in the state. The state, currently is one of the fastest-growing states in the country and definitely has huge potential in terms of real estate investment due to industrial growth.
Further, the prices of properties and land will see a good return of investment in the forthcoming years.”
He, however, does not think that discounts and freebies are a way forward to entice the buyers. Many other analysts also feel that discounts and freebies are used as a marketing methodology only in those projects that have failed to take off. The right project in the right market at the right price point does not need to offer discounts as there are enough takers in the market. “Buyers are no longer wooed to discounts. The services and amenities offered to the investors through the projects play a significant role in translating into sales. These enhanced services are the driving force that bequeaths the end-users for investments,” says Ajmera.
Manan Choksi, regional director, RE/MAX, MGM, also believes that it is a good time to buy property in Gujarat. He avers, “The prices are at the lower side and there seems to be positive sentiment from the political standpoint. Further, this is the right time for end-users to identify this right entry point since inventory is easily available with decent room for negotiation. The discounts by various developers are translating into sales but all depends on the segment of property. There is a good movement in 3, 4 and 5-BHK apartments.”
Property brokers active in the market assert that it would be safe to call Gujarat property market as a buyers’ market as of now. It would not be right to say that the price correction in the state has been a uniform pattern across the micro markets. In fact, semi-urban market has seen more correction. There is no correction in the prime market. In fact, in a few high end properties, there is an increase in market price.
So, it seems ‘one size fits all’ solution may not be available in the property market of Gujarat but the right project in the right market at the right price point is still selling at a brisk pace. More importantly, since there is enough ready-to-move inventory available in many of the prime localities across the state. in general, and Ahmedabad, Vadodara and Surat in particular, it is turning out to be a boon for the end-users.
The property markets across the state of Gujarat may not be truly buyers’ market in the conventional sense of the term, but what can be vouchsafed is the fact that this is the right time to buy property. Post the general elections, it is anticipated that the economy at the macro level will start coming back on the track, and there onwards the property market across the state of Gujarat will once again turn out to be red hot.