Ahmedabad Residex speak: Realty prices dip yet again in west zone

Although Ahmedabad realty market has shown spurt in realty prices, west zone comprising some of city's posh areas has seen a dip for the December quarter.

The National Housing Bank's data shows that real estate prices fell by 4% in the quarter, but the city registered an overall growth of 2.45% due to price rise in south, north and central zones.

The National Housing Bank (NHB) residex reached 167 in the third quarter of 2011-12 from 163 in second quarter of 2011-12.

However, in the western part, prices have dipped by 4.14%. Market experts believe the affordability factor has boosted the market in the east, while investors are to be blamed for the price decline in the western part of the city.

Of the five zones of Ahmedabad, north, south and central have witnessed an upward trend in realty prices, while prices have dropped in west and east zone.

Property rates in Bodakdev, Vastrapur, Bopal, Jodhpur, Sola, Thaltej, Shilaj Road, Vejalpur and Ambawadi, included in the west zone, have fallen by 4.14%, as the residex of area dropped from 193 to 185.

The south zone that includes Maninagar, Vatva and Isanpur has witnessed the highest growth of 10%, while the north zone consisting of Vastral and surrounding areas has witnessed 9% increase in residential property price. The central zone has also seen a 5% rise in December quarter.

In the September quarter, west zone had seen an increase of 5% in property prices after witnessing fall of 14% in previous quarter.

Real estate players believe that eastern parts have always witnessed moderate growth in property prices, while in western parts prices have gone up rapidly, making houses unaffordable.

The growth of any city depends on affordable housing and realtors in east are proving this, they say.

Vijay Shah, chairman of rurban committee of Gujarat Chamber of Commerce and Industry, termed the price fall in west zone as sign of stability in real estate market.

He said that people are getting amenities in areas like Gota, Ranip, Adalaj, Chandkheda and other areas connecting Ahmedabad to Gandhinagar at lower price compared to posh areas in western side.

"Land scarcity and strict regulations for re-development keeps realty rates high in central zone," said Shah.