“Small size units of 1BHK have gained rise in demand by 3-4 per cent in the last six months q-o-q, finds PropIndex (Oct-Dec 2014), a quarterly report by Magicbricks. However, 2 and 3BHK category still holds about 80 per cent share of housing demand in Ahmedabad.
In the last quarter, apartments remained the first preference over other residential categories, such as residential plots, independent houses or villas. This was primarily on account of rise in land values in the last six years coupled with increasing demand for properties in the gated community mostly from the migrant population in the city.
Bopal, Gota, Chandkheda and Satellite are some of the areas witnessing maximum demand for small size units. This was reflected in the increase in demand for properties worth Rs 20-40 lakh, which has witnessed a rise by 10 per cent in the last six months.
However, supply shows a different trend from demand. It shows increase in active supply of large size units (3 and 4BHK) by 2-3 per cent q-o-q. This was in line with the rise in availability of properties in the premium segment worth Rs 1 crore and above, which has witnessed a rise by 6 per cent in the Oct-Dec 2014 quarter. The city recorded over 25 per cent supply for properties in the premium segment, whereas demand was merely 7 per cent.
On the other hand, the 1BHK category recorded a drop in active supply in the last six months. Units in the range of up to Rs 40 lakh were less in supply and recorded a drop of 2-4 per cent in the Oct-Dec 2014 quarter. Other categories remained almost stable in all other budget ranges.
This shows a clear mismatch in demand and supply in the residential market of all housing unit categories. There was a growing demand for affordable housing primarily in the budget range of up to Rs 40 lakh and small size units. To bridge the gap between demand and supply, public and private developers need to focus on constructing more projects in the affordable ranges.” Rishabh Jain-Magicbricks.com