The Rising Demand for Affordable Housing in Gujarat
Gujarat, known as the most industrialized state of India, now has its real estate agents betting on
affordable homes. Gujarat Real Estate Regulatory Authority’s one-third real estate projects fall
under the category of affordable homes. Several realty projects like commercial, residential,
mixed-use and plotting schemes – ‘Affordable Homes’ has become the new buzzword for
Gujarat’s realty sector.
With 502 residential affordable housing projects – both in residential and mixed-use –
Ahmedabad ranks the highest by holding the most number of projects followed by Vadodara,
Rajkot, Surat and Gandhinagar. A recent report by Real Estate consultancy firm Knight Frank
India reveals that 2844 residential units were initiated and launched in Ahmedabad in the month
of July-December 2018. The major part of launches was under affordable housing schemes.
Ahmedabad being a price sensitive market is considered as an affordable city. This marks a
sharp increase in affordable housing in the coming future.
Gujarat being a robust market especially in the affordable segment has tremendous
opportunities in store for redevelopment schemes. Cities like Ahmedabad, Vadodara and Surat
have buyers which majorly demand plots and bungalows. The main reason behind increasing
demand is rapid urbanization and a large influx of people from other cities.
Developers are showing a keen interest in affordable housing trend given the government’s
much-required push to the category and inherent demand for housing in India. Real Estate
Regulatory and Authority of India is now focusing on implementation and is now more focused
on accountability and transparency and therefore customers are shifting to more organized
players in the market.
Earlier in 2018, according to PropTiger.com housing sales were estimated to have increased by
25% at 3.1 lakh units driven by the rising demand especially for affordable housing. However in
response only 1.9 lakh new units were launched in 2018, supply was down by 22% from the
previous year. Liquidity crunch and unsold inventory restricted the new supply.
However, the downslide in home sales number has been arrested and the sector is finally out of
the dropping sales cycle. As per the real estate law, the completion rate of housing projects has
improved, since building within the deadline is mandatory. Although new launches are bound to
be low, with sales showing a stagnated growth. Developers are more focused on selling inventory in the existing project and completing construction on time.
ESSPEE Group, a Real Estate Company in Vadodara has its presence in diverse sectors like residential, commercial and real estate development. With 30 years of experience in real estate, ESSPEE Group works with a dedicated approach and has the knowledge and experience to deliver the best property in Vadodara.