Ahmedabad’s residential real estate market is witnessing a notable slowdown in sales despite a surge in new project launches, reflecting broader economic uncertainties and shifting buyer sentiment. According to Anarock’s Q1 2025 report, residential sales in the city declined by 23% year-on-year, with around 8,900 housing units sold during the quarter—a 4% dip compared to the previous quarter.

West Ahmedabad continues to lead the sales chart, accounting for 35% of total sales, although it experienced a slight 2% quarterly decline. Meanwhile, North Ahmedabad has emerged as the second most preferred residential zone, capturing 28% of sales. This shift points to changing buyer preferences influenced by improved infrastructure, better connectivity, and emerging commercial hubs in the northern parts of the city.

Contrary to the slowdown in sales, the market saw a strong rise in new housing launches. Developers introduced approximately 9,600 new units in Q1 2025, marking a 7% increase quarter-on-quarter and a significant 15% rise year-on-year. Ahmedabad is now on par with cities like Kolkata in terms of sustained new project launches, showcasing developer confidence in the long-term potential of the market.

West Ahmedabad remains the hotspot for development activity, contributing 39% of all new launches and recording an impressive 31% quarterly growth. North Ahmedabad follows with a 30% share in new launches, reinforcing the growing importance of this area among builders and buyers alike.

The mid-range housing segment, priced between Rs 40-80 lakh, dominates the market, making up 52% of all new launches. This price band caters primarily to the city’s expanding middle-class families and reflects their purchasing power and housing preferences. The next popular segment comprises homes priced between Rs 80 lakh and Rs 1.25 crore, which constitute 27% of new launches.

More affordable housing priced below Rs 40 lakh accounts for 13% of the market, while premium properties in the Rs 1.25-2.25 crore range hold a 7% share. Ultra-luxury homes above Rs 2.5 crore make up a minimal 1%, indicating limited demand in the ultra-high-end category.

Despite the drop in sales, Ahmedabad’s available inventory remains steady at around 63,500 units, showing a slight 5% year-on-year decrease, signaling underlying demand resilience. West Ahmedabad holds the largest share of inventory at 39%, followed by North Ahmedabad with 33%.

However, inventory overhang—the time taken to sell existing stock—has risen to 19 months in Q1 2025, up one month from the previous quarter. This rising inventory suggests that buyers may find better negotiation opportunities in the near future as supply exceeds demand.

Overall, Ahmedabad’s residential market presents a mixed picture: strong developer activity and abundant housing options versus cautious buyers and slower sales, highlighting the challenges and opportunities ahead in the city’s real estate sector.

AM.