While the market pundits continue to cry hoarse about a weakening economy and resulting fall in demand for real estate, Ahmedabad promises to negate all these theories.
If projections by a leading real estate consultant are anything to go by, Ahmedabad will see influx of 50,000 new residential units in the mid-segment category in next two years. Absorption in commercial space has surpassed pre-recession levels in the city, says a report by the consultant.
This market overview of Ahmedabad was released by one of the leading real estate consultants, Cushman & Wakefield during launch of their office in the city on Tuesday.
“About 50,000 residential units will be added to the city in next two years with 75% of them being concentrated in the peripheral areas like SG road, SP Ring Road, Bopal, Naroda, Vejalpur, Gota and Ranip,” said Sanjay Dutt, executive managing director (south Asia) – Cushman & Wakefield.
Of the total residential units to be developed, about 85% cater to the mid-segment category. High-end developments have also gained prominence as about 4,100 such units are under-construction at SG road, Vejalpur, Prahladnagar and Thaltej.
Though realty has had a lean run recently with majority of the developers overleveraged, Dutt does not see any chance of correction in the market. “Properties are already available at corrected rates as developers have absorbed the 35% increase in construction costs. There is hardly any chance of prices falling further,” he said.
Market overview also shows that absorption in office space has surpassed pre-recession levels in the city. About 0.6 million square feet of commercial space was consumed in 2007, which increased to 0.8 million square feet in 2011 and is likely to go further up in current year, said Dutt.
The city is expected to witness supply of 3.3 million square feet by end of 2012, 16% higher than last year.
Source:
www.dnaindia.com
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