Latest Real Estate News on 'Ahmedabad'

Ahmedabad: Over 4.6 lakh properties registered in last two years

Ahmedabad witnessed registration of over 4.6 lakh property and land deals between February 2018 and February 2020. While the number of listings in 2018 was 2.31 lakh, it increased by 0.34 percent, i.e. 2.33 lakh in 2019.

Despite the overall slowdown in the real estate market, Ahmedabad observed as many as 4.65 lakh property registrations in the last two years. As per the estimates, nearly 2.31 lakh properties were listed in 2018 and about 2.33 lakh residential units  and plots were registered in 2019.

It is to be noted that the number of registrations in 2019 grew marginally by 795 documents as the online response remained meek. Of the 2.33 lakh properties listed during the last year, the payment of only 8,204 properties was processed digitally. On the flip side, overall revenue collection in 2019 declined by 1.4 percent to Rs 360 crore as against Rs 365 crore in 2018.

According to Ajay Patel, President, GIHED-CREDAI, the number of registrations has increased despite the slowdown which is a good sign for the real estate industry. It shows that the demand exists and end-users and investors are keen towards real estate investment in the city. Moreover, though the annual hike in registration is marginal, Ahmedabad has been able to maintain conversions.

Promoters caught in MahaRERA and coronavirus crisis, possession to be delayed

Aurangabad: The real estate market is staring at a major crisis with promoters having a tough time in complying with MahaRERA deadline amid the outbreak of COVID-19.

The slowdown in the real estate sector is going to affect the buyers as delays are likely to creep in for the possession of their dream homes. Around 300 ongoing construction projects in the city and outskirts could get delayed by varying time frames as against the stipulated deadlines, CREDAI office-bearers said. The actual number of projects is expected to be more considering the construction activities of non-CREDAI members.

Sunil Bedmutha, secretary of Aurangabad chapter president of Confederation of Real Estate Developers’ Associations of India (CREDAI), said the construction activities were almost stalled due to the current shut down. “The outbreak of COVID-19 was an unforeseen crisis which has caught the builders and promoters off guard. Besides slump in ongoing projects, the fresh booking ..

“The COVID-19 is a natural calamity and therefore any delay in handing over the home to buyers is inevitable. MahaRERA authorities must show a lenient approach towards the promoters,” CREDAI office-bearers said.

Praveen Gunjkar, a buyer who has booked his dream home, was expected to get possession in June. “The builder had assured us that we can shift to our new home by the start of Monsoon. I now fear delayed possession considering the overall set of conditions. Such a delay would hamper my future planning including terminating rent-agreement with landlord and shifting of my child to a new school,” he said.

Meanwhile, the current slump in the real-estate may offer an opportunistic time for buyers to secure the property deals at a relatively lower cost. “The COVID-19 crisis will have an adverse impact on the real estate sector and shortfall of capital is imminent even if the current crisis subsides over a period of next few weeks. The builders and promoters are to be in dire need of money once the shut down is over and could offer concession and attractive schemes for buyers,” Jitendra Limbekar, a real-estate agent said.

Source: ET

Ahmedabad metro to push city’s real estate market

Apart from a suitable budget and a strategic location, physical infrastructure also plays an important roll in the decision of buying a property. The approval for the Ahmedabad Metro Rail Project Phase-1 is expected to lift the real estate market of the city.

The metro phase 1 stretch covers two corridors – the North-South corridor starting from APMC, Vasna to Motera Stadium followed by the East-West corridor starting from Thaltej Gam to Vastral Gam.

If you are planning to buy a house in Ahmedabad, then localities near the upcoming Ahmedabad to Gandhinagar metro belt can be considered for good returns. “In almost all metropolitan cities across India, investing near the metro connectivity is considered ideal in terms of price appreciation and easy commute. Rapidly developing Ahmedabad has one more reason for the face-lift of its real estate sector,” says Nikunj Jani, lead consultant, Capital realtors.

Connectivity directly affects a buyer’s decision of selecting a locality. The upcoming metro belt will pass through the main city of Ahmedabad to the hub of IT and electronics industry (Gandhinagar). It will decongest some of the traffic marred areas of the city and will also ensure rapid connectivity to commuters.
Would the new metro lines affect property prices?

“The prices of property near the metro stretch have already started witnessing a rise and in future are expected to go up further. However, at present, the rental market stays unaffected” adds Jani. The middle class is expected to invest in these areas as home buyers from this segment prefer to live in areas having good metro connectivity.

“The returns on investment in areas within close proximity to the new metro routes are expected to be high. Many individuals already living in their own accommodation in Ahmedabad are banking on properties near the metro belt, to enjoy healthy returns once the metro is functional,” says Jitendra Soni, consultant, Harshil Estate.

Would the metro line bring new construction plans?

The upcoming metro belt comes with a scope of new development in areas with available vacant land. Hiren Patil, a local realtor at Disha Estate Management says, “Areas such as Hebatpur, Sindhu Bhavan Road and 5 km from Thaltej metro station, land is available where developers are planning to come up with residential housing projects.”

All these areas are within 3-6 km radius from the upcoming Thaltej Gam Metro Station. Prior to the announcement of the metro, these areas had a sizeable demand for housing but with the coming of the metro, the area is expected to witness more development and investments.

Upcoming metro routes

Localities to become accessible due to the upcoming metro are Motera Stadium, Sabarmati, AEC, Sabarmati Railway Station, Ranip, Juna Vajad, Usmanpura, Ashram Road, Nava Gandhigram, Madalpur, Paldi, Anjali, Vasna, APMC, Thaltej, Doordarshan Kendra, Gurukul Road, Commerce Six Road, Stadium, Ashram Road, Shahpur, Gheekanta, Kalupur Railway Station, Kanakaria East, Apparel park, Amraiwadi, Rabri Colony, Vastral and Nirat Cross Road.

Both buyers and investors have ample reasons to invest in Ahmedabad, with the new metro line set to bring enhanced connectivity and might work as an added reason for investment.

Source: ET

Real estate sector now banks on BJP to give push for affordable housing.

Reacting to election outcome, Anuj Puri, Chairman and Country Head, JLL India, said: “Housing shortage is legendary, and the Indian Government has always kept low-cost housing in the focus. However, most developers have shied away from focusing on this space because affordable housing is a relatively low-margin business; and in high inflationary scenario, profitability remains a key concern. Equity participation by PE funds has also been limited in the budget housing space.”

“The new Government may look at helping on quicker land acquisition, faster approvals, easy and low-cost funding availability and better infrastructure to make it a more interesting proposition for developers and investors,” he added.

He further added that in Gujarat (the home state of Narendra Modi), the Government has been extending a helping hand to developers who construct low-cost homes, although availability of cheap capital, lengthy approval process and affordable land availability continue to remain challenges.

Buying house? Pay upfront and get up to 25% discount

AHMEDABAD: An HR executive working with a multinational struck gold in Prahaladnagar — a three BHK flat in a premium housing colony for Rs 50 lakh. “The developer had quoted the same amount for a 2 BHK unit two-three years ago in the same scheme. It seems this is a good time to buy,” says the 40-year-old professional who returned to her native after three years.

If you have money in hand, realtors are ready to welcome buyers with heavy discounts and freebies. Inquiries made by this correspondent, who posed as prospective buyer, revealed that sellers were willing to offer up to 25% discounts if the payment was made within 48 hours.

“The economic slowdown coupled with political instability has led to developers offering heavy discounts. The situation may change after the election results are out,” says a leading developer.

For instance, an upcoming posh residential complex on the SP Ring Road near new Chandkheda is priced at 45 lakh for a two-bedroom flat. Offer to pay cash and the price is instantly scaled down by 22%.

Similar is the situation in resale market. A 185 sq yard flat in a posh tower in Anandnagar was priced at Rs 80 lakh. When this correspondent inquired about the discount if full payment was made within two days, the seller quoted a revised price of Rs 68 lakh.

Insiders say that the downward trend started over two years ago when sales started slowing down due to soaring prices. Many were hoping NRIs to bail them out this winter but a poor response has left many desperate. Desperation to sell and raise liquid cash was apparent when recently many builders started offering scheme — a free car with a bungalow, buy a plot and get construction free, buy a luxury apartment and get furnishings free.

Yogesh Bhavsar, president of Gujarat Institute of Housing and Estate Developers ( GIHED), admits that a few builders are offering huge discounts. “It varies from case to case. Those who have holding capacity will never offer discounts. The rest would have no choice,” he says.

http://timesofindia.indiatimes.com/city/ahmedabad/Buying-house-Pay-upfront-and-get-up-to-25-discount/articleshow/31879950.cms

Unauthorized constructions removed in Ahmedabad

AHMEDABAD: The estate and anti-encroachment department demolished illegal constructions spread over 485 sq ft in residential plot No 21/2 and 24/2 in TP scheme 56 on Narol-Vatva Road near Neelam Traders in Isanpur ward on Monday. The commercial complex under construction was pulled down by the south zone team of the AMC after it was found being erected without proper permission. Illegal industrial construction was being carried out on the space meant for residential purposes. AMC is demolishing all construction work done after March 28, 2011, if found in violation of Section 260 of BPMC Act.

In another demolition exercise, the estate and encroachment department demolished illegal constructions spread over 3,013 sq ft in residential plot No. 333 on Piplaj-Pirana Road opposite Torrent power plant in Lambha (west) ward. The commercial complex under construction was pulled down by the south zone team of the AMC after it was found being erected without proper permission. Illegal industrial construction was being carried out on the space meant for residential purposes.

http://timesofindia.indiatimes.com/city/ahmedabad/Unauthorized-constructions-removed-in-Ahmedabad/articleshow/31839368.cms

767 buildings face punitive flame

AHMEDABAD: Residents of 767 buildings face the prospect of their homes being sealed if they fail to install fire-safety features and equipment in their buildings by March 2.

The Ahmedabad Municipal Corporation on Tuesday filed a status report in the Gujarat high court in response to a PIL demanding the implementation of the court’s earlier directions on the enforcement of building bylaws relating to fire safety. The petition was moved by Prakash Nambiar through his advocate, Amit Panchal.

The AMC told the court that 767 buildings in the city, mostly residential, do not comply with fire-safety norms and that only 40-odd buildings have shown compliance.

The status report further stated that the AMC had issued final notices to each of these buildings and after the expiry of the deadline, strict punitive action would be taken. The last of such notices was sent on February 15. The AMC has also issued public notices though newspaper advertisements. The corporation has asked the buildings to comply with the norms within 15 days of receiving the notice. The court has scheduled the next hearing on the matter on March 3.

The status report said that the final notice was issued under section 268 of the Bombay Provincial Corporation Act. The section is clear that if the owners fail to comply with the directions of the notice the building can be sealed by the corporation.

Threat of contempt

Rewati Towers, Shanker Chambers, Takshashila Blocks A/B, E/F, C/D and G/H face contempt proceeding for non-compliance of court orders. In its interim order on January 28, 2014, the high court had stated: “It …appears from the report that four other buildings…though were made parties to the earlier proceedings, have not yet complied with the requirement and, at the same time, Takshashila has not offered inspection. Such being the position, we issue notice upon the owners and occupiers of those four buildings as to why they should not be penalized for non-compliance of their undertaking given earlier before this Court. Rule returnable four weeks.”The state government had in January issued a notification stating that the new, stringent Fire Safety Act would be implemented from March, two months after considering objections from people.

http://timesofindia.indiatimes.com/city/ahmedabad/767-buildings-face-punitive-flame/articleshow/30639680.cms