Residential property prices have increased in the range of 35% to 40% in few years.
Are you planning to buy a new home that fits into the 'affordable housing' range? Chances are you won't find two-BHK apartments within the Rs15-20 lakh slot, in a radius of around five kilometres from Iscon Circle on SG highway. In all probability, you'll have to look for alternative areas such as Gota, New Ranip, Makarba and Shela in western Ahmedabad or New Maninagar, Vastral and Nava Naroda in the eastern part for your dream home.
The definition of affordability depends on many aspects such as location, area, civic and other amenities, economic and earning scenario and the paying capacity of the customers. Suresh Patel, president of GIHED, said that a two-BHK 100 square yard flat, in a good location with basic infrastructure could be called affordable if it falls within the 20-lakh bracket.
Yogesh Bhavsar, vice president of GIHED, added that the definition of affordability changes as per cities and areas. But people like to buy houses in well-developed areas at a price that suits their budget, he said.
Prices of property have been soaring in the last four years or so. Prices of residential properties have increased in the range of 35% to 40% in a couple of years in a majority of areas in the city, said Hitesh Shah, CEO of residential properties at Space Management Ltd. Moreover, few realtors are coming up with two-BHK apartment schemes in posh areas such as Satellite, Prahladnagar or Bodakdev.
According to Jigar Pandya, COO of Real Estate Studies and Management Academy (RESMA), two-BHK apartments in a budget of Rs15-20 lakh are available only in certain pockets such as Gota, New Ranip and others. "One doesn't find such flats, particularly with this budget, within a radius of around five kilometres from Iscon circle," said Pandya.
Scarcity of land is one of the major reasons for sky rocketing prices of residential properties in the city. Although construction and labour costs have gone up, they do not make much of a difference. Builders in western Ahmedabad are launching sites in eastern Ahmedabad and giving good quality construction there as well, Bhavsar said at GIHED.
In areas where town planning schemes have not been implemented and 40% land deduction has not been enforced, land is still affordable, said Suresh Patel. He added, "Around one and a half years back Bopal used to be affordable, now it is not. The prices have gone up by about 1.5 times".
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