Real estate prices may be on the lower side in Ahmedabad compared to that of Pune and Bangalore. But the two IT hubs score over the former in terms of affordability. Realtors here believe that prices are not realistic in Ahmedabad compared to the two Tier-I cities driven by the IT sector.
The highest per square feet realty rate in Ahmedabad, a Tier-II city, is in the range of Rs5,000-6,000 in areas like Prahladnagar and Satellite, which could be around Rs15,000 in the posh localities of Bangalore and Pune.
“Still not many in Ahmedabad can afford a flat worth Rs35 lakh to Rs50 lakh, which is not the case in Bangalore and Pune. So, from this point of view, real estate prices are more realistic in these two Tier-I cities compared to that of Ahmedabad,” said Kamal Singal, CEO of Arvind Infrastructure.
A five-year gross salary of any person is his or her affordability. In Pune, affordability in the mid-segment is in the range of Rs50 lakh to Rs2 crore, said Atul Chordia, chairman and managing director of Panchshil Realty in Pune.
Chordia further stated that Pune and Bangalore bank big on the IT sector, which absorbs around 3.5 million sq ft office area per annum creating around 35,000 new white collar jobs for salaries ranging from Rs50,000 to Rs4 lakh per month. “It creates a continuous demand in the mid-segment that helps real estate do better,” he pointed out.
Again, in average mid-segment price range, Ahmedabad is not far behind Bangalore and Pune.
“Though realty rates may be much higher in certain localities, it is possible to buy a good property in emerging areas for around Rs3,000 per sq ft in Bangalore,” said Rajesh Vaswani, executive director of Venus Group of companies in Ahmedabad. Besides salary, job opportunities and growth of service sector, lack of transparency, high presence of investors, chargeable FSI (floor space index) and unrealistic land prices make property prices in Ahmedabad unrealistic and beyond reach, claimed realtors.
Developers are yet to come out of the super built-up concept and cash demand, which makes buying property difficult for the salaried class in Ahmedabad, said a real estate consultant.
Moreover, the realty market is stable in Bangalore and Pune whereas it depends more on speculation and investors rather than actual users in Ahmedabad. Naturally, ups and downs are bound to happen, said Vaswani.
Developers are yet to come out of super built-up concept and cash demand, which makes buying property difficult, feel real estate consultants