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Ahmedabad before passage of Real Estate Bill
Ahmedabad before passage of Real Estate Bill

At the same time when real-estate developers are battling to sell approximately 39,700 unsold homes in Ahmedabad, the amount of new residential projects in ahmedabad being launched in the town have shot up phenomenally by 50 percent over the last six months.

 

“There are 75,000 under construction homes in Ahmedabad. Of these 39,700 units which are under different phases of construction remain unsold,” said Saurabh Mehrotra, National Director (Advisory Services), Knight Frank, a real-estate consultant that released a fresh report on the property trends Ahmedabad.

 

The report suggests that over 7400 new housing units were launched in the six months between July-December 2015. This is 50 per cent more than 4900-odd housing units launched during exactly the same six-month period in 2014. Locations in Central Ahmedabad like Paldi, Naranpura and Vasana leads in new launches with a five-fold jump.

 

“This (new launches) has increased the worries available in the market and worsened the oversupply situation in the town,” states the report that also continues the current an estimate of over 9000 new housing units which are expected to flood the residential market in Ahmedabad in the first six months of 2016.

 

When quizzed if the Real Estate (Regulation and Development) Bill 2015, that is expected to be passed in the upcoming budget session of the Parliament, is one reason for the Builders in ahmedabad trying to flood the marketplace with new launches, Mehrotra said, “It could be among the reasons… but I believe there is fresh surge in demand for houses while the sale volumes have picked up in Ahmedabad by 13 percent in July-December 2015.”

 

The real-estate bill not merely offers a real-estate regulator but additionally put pressure on developers to change the traditional means of managing funds, seeking approvals and completing projects.

 

So far as Ahmedabad's housing market is concerned, in the last four years real-estate developers in Ahmedabad have already been cutting down on new launches to tackle the problem of rising inventory of unsold homes. In comparison to 45,100 new homes launched in 2011, the numbers have steadily fallen in 2012 (30,700 units), 2013 (23,800 units), 2014 (14,011). It is only in 2015, the amount of new launches has risen up to 15,500 units.

 

Real-estate developers in Ahmedabad say that the rise in new launches is basically because of the improved sentiments in the market. “In comparison to usually the one residential project that I launched in 2014, I launched at least three projects of my very own in 2015. However, it's nothing related to the newest real-estate bill,” said Dipak Patel, a respected developer and the president of Gujarat Institute of Housing and Estate Developers (GIHED), an area arm of CREDAI.