While several buyers feel that investors are their biggest enemies, builders and brokers are blaming the state government's policies for the escalating prices.
Builders, brokers and realty buyers alike in Ahmedabad, are now voicing their concern regarding the sky-rocketing prices of real estate properties in Ahmedabad. While several buyers feel that investors are their biggest enemies, builders and brokers are blaming the state government's policies for the escalating prices.
Realtors, besides asserting that the state's policies are working against them, are also backing the idea of real estate properties being sold on the basis of built-up area, and are considering removal of the concept of super built-up area.
Real estate consultants believe that one of the main reasons for properties in Ahmedabad being expensive is the non-availability of plots within city limits. "The government has restricted development within the city by creating various residential zones," said Pravin Bavadiya, president of Ahmedabad Realtors Association.
He added that the government should take the initiative of removing restrictions such as those on green belts to reduce the scarcity of land, which will bringing down prices.
Moreover, real estate brokers are favouring selling on the basis of built-up area and not the super built-up area. "There is ambiguity and discrepancies galore with regards to the concept of 'super built-up'. This way, the buyer does not get to know how much area he gets for actual usage," Bavadiya said.
He added that there is no need to implement the 'super built-up' concept in plotted schemes. Realtors are also of the opinion that the market for residential real estate properties in Gujarat is headed towards oversupply, and the same is reflected in prices as well. A broker told DNA that he expects the market to be reeling under oversupply of residential units, within the next seven months.
Pawan Bakeri, managing director of Bakeri Constructions, agreed with the brokers. "The concept of lower FSI is seen only in Gujarat. Outside the state, we can see high rises aplenty. Because of this, it becomes difficult for builders to build houses at low or affordable prices in Ahmedabad," he said. He added that if the state government abolishes the R1, R2 and R3 zone system, builders will be able to construct low-budget homes.
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