There has been an increase in selling of existing residential property from five per cent in January to around 15 per cent in April, said a source.
The realty market in Ahmedabad has seen a drastic rise in fortunes over the past month, and according to sources in the market, the city witnessed a turnover of Rs70 crore in the past two days on account of Akshay Tritiya, an auspicious time.
There has been an increase in selling of existing residential property from five per cent in January to around 15 per cent in April, said a source.
“We had enquiries in the residential segment from investors as well as end users (genuine buyers), but few deals were finalised. However, in the past month, we have noticed fairly good demand from those actually interested in purchasing,” said Hitesh Shah, director (residential property), Space Management Ltd.
Regarding the demand for high-end property, Shah said that the segment had seen a good number of bookings as people from cities like Rajkot, Mumbai and Jamnagar were looking to invest in Ahmedabad. “One of the reasons for this turnaround in the realty market in the past month is the positive movement in global equity market, with people getting good returns,” he said.
“The equity market has been doing well for the past one month and liquidity flow has eased considerably. At current levels, some investors are booking profit in the equity market and investing it in other classes; real estate forms one such avenue,” said Karnik Shah, director, Navkar Share and Stock Brokers Pvt Ltd.
Commenting on the same, city-based developer Vijay Shah said that many developers and investors had put their money in equity earlier; but, after seeing positive signs, had begun pulling their investments from stocks to instead invest in realty.
He said that equity was at a one-year high while realty was at its lowest, because of which investors were finding real estate a better option than stocks.
Over the last month, investors began buying property, realising it had reached a bottom.
“We have seen that some buyers are now prepared to purchase homes at prevailing prices. The current prices are corrected ones and buyers are somewhat comfortable with this,” said Praveen Bavadiya, CMD, City Estate Management Ltd.
Jaxay Shah, president of Credai-Gujarat, said that as compared to January, property and land deals had doubled in April. “End-users have played a major role as they are the ones who are buying most of the property in question,” he said.
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