Supply of residential units in Ahmedabad falls drastically
Ahmedabad- On one hand, the developers are waiting for an increase in floor space index (FSI) rules and on the other hand the year 2012 recorded 46 percent drop in the residential unit supply in Ahmedabad.
The maximum number of projects in Ahmedabad were in mid segment while the it was just 12 percent in case of high-end segment. Developers launched affordable houses more as compared to luxury residential units in 2012. For example Gota road in Ahmedabad is a new destination for builders.
Here apartments units are available at affordable prices i. e between Rs 30-40 lakh. This road has apartments like 1, 2 and 3 BHK residential units varying between 675- 1620 sq ft (75-180 sq yd). The price of these units ranges between Rs 2,600 -3,000 per sq ft.
According to the data of Cushman and Wakefield, there were 12,270 residential units were launched in the year 2011 while it was just 6,607 units in 2012 which resulted in decline of 46 percent.
However, developers are awaiting the state election results which will declare the increase in FSI. Ahmedabad Municipal Corporation (AMC) has already asked the state government to provide extra FSI on both sides of BRTS corridor in city. AMC officials have requested to give FSI of five in first 300 meters on both side and FSI of four in further 200 meter on both sides of BRTS corridor
Along with FSI, the supply of resale units (secondary market) also contributed to the decline in residential units.The supply in secondary market demotivated developers to launch new residential projects in Ahmedabad. Some developers feels that it is not worth to wait for change in government policy (FSI) before increase in supply. If there is any increase in the supply of residential units then it would be only at the cost of margins for developers. Developers have to lower their profit margin for this increase.
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Affordable houses, Affordable Housing, Affordable projects in Ahmedabad, Ahemdabad, Ahmedabad Municipal Corporation, Ahmedabad projects, ahmedabad properties, AMC, Floor Space Index, FSI, Gota road projects
