Market Overview and Performance
Ahmedabad’s real estate market in 2025 presents a mixed yet promising scenario characterized by robust price appreciation despite a significant decline in new launches. The city has demonstrated remarkable resilience with strong sales value growth and sustained buyer interest in the premium and mid-segment categories.
Key Market Indicators
Sales Performance: The first half of 2025 saw approximately 25,000 primary units sold, representing a modest 3% year-on-year increase. This positions Ahmedabad’s housing sales volume close to that of the National Capital Region, highlighting the city’s growing significance in India’s real estate landscape.
Price Appreciation: Property prices have shown consistent upward momentum with a 7% increase in average ticket size compared to H1 2024. The market has witnessed prices ranging from ₹5,434 to ₹8,904 per square foot across different localities.
Supply Dynamics: New unit launches experienced a dramatic 61% decline to 11,000 units in H1 2025 from approximately 31,000 units in the same period of 2024. This reduction is primarily attributed to developers postponing project launches due to market sentiment concerns.
Financial Performance: Despite lower launch volumes, the total sales value increased by 10% to ₹21,849 crore in H1 2025, indicating strong pricing power and buyer willingness to pay premium rates.
Segment-wise Market Analysis
Mid-Segment Dominance
The mid-segment category maintained its stronghold, accounting for approximately 70% of total launches with around 3,600 units in Q2 2025. This segment has shown a 19% increase over the average quarterly supply of the past four quarters.
Affordable Housing Revival
The affordable housing segment recorded its strongest performance since Q4 2022, with around 1,550 units launched – representing a sixfold increase both quarter-on-quarter and year-on-year. The market share of properties priced under ₹70 lakh increased to 29% from 27% in the previous year.
Premium Segment Challenges
Luxury and high-end segments have witnessed limited activity, with Q2 2025 marking the third consecutive quarter of negligible luxury launches. This trend reflects the market’s shift toward more accessible price points.
Regional Performance and Investment Hotspots
Top Performing Areas
West Peripheral Submarket: Leading the residential supply with a 37% share of new launches, primarily due to proximity to the Sanand industrial hub and direct access to Sardar Patel Ring Road.
North Submarket: Accounting for 30% of launches with a remarkable 61% year-on-year supply increase and 20-25% rental growth.
Prime Investment Destinations
| Area | Price Range (₹/sq ft) | Growth Potential | Key Features |
|---|---|---|---|
| SG Highway | 5,900 – 10,000 | High | Premium residential corridor with excellent connectivity |
| Bopal | 4,500 – 7,500 | Very High | Fast-growing residential hub with modern infrastructure |
| Shela | 6,519 | High | Emerging as top locality for affordable luxury |
| GIFT City | 7,000 – 12,000 | Very High | India’s first smart city with international finance hub |
| South Bopal | 8,904 | Moderate | High-end residential area with premium amenities |
Infrastructure Development Impact
Metro Expansion
The Ahmedabad Metro Phase 2 has become operational, connecting key areas including GIFT City and Gandhinagar. The system now spans 58.87 kilometers and has significantly enhanced connectivity between residential and commercial hubs.
Major Infrastructure Projects
GIFT City Development: With investments exceeding ₹10,000 crore, GIFT City continues to drive demand for both residential and commercial properties in surrounding areas.
Sanand Semiconductor Hub: The establishment of semiconductor manufacturing with ₹91,000 crore investment by companies like Micron and Tata Electronics is creating a new industrial ecosystem.
Proposed Metro Extensions: Three major extensions worth ₹6,050 crore are planned, including routes to the airport, IIT Gandhinagar, and Olympic Village preparations.
Market Dynamics and Trends
Rental Market Performance
Rental markets have shown exceptional growth with 10-15% year-on-year appreciation across the city. The North and East submarkets are leading with 20-25% rental growth, reflecting strong demand from working professionals.
Pricing Trends by Segment
High-End Segment: The West submarket has witnessed 12-15% capital value appreciation year-on-year.
Mid-End Category: South and East submarkets have experienced 10-12% capital value growth.
North Mid-End: Quoted capital values range from ₹3,750-4,800 per square foot with 6% year-on-year appreciation.
Government Policy Impact
Jantri Rate Revision
The Gujarat government implemented a 20-30% increase in Jantri rates from April 1, 2025. This revision is expected to:
- Increase property transaction costs
- Boost government revenue from stamp duty
- Create short-term market adjustments
- Potentially impact affordable housing segment
Budget 2025 Implications
The Union Budget 2025 emphasizes infrastructure development, affordable housing initiatives, and regulatory reforms that are expected to benefit Gujarat’s property market.
Challenges and Market Sentiment
Developer Caution
Market sentiment concerns led many developers to defer new launches, as noted by industry leaders. However, recent interest rate reductions and improving liquidity conditions are expected to boost launches in subsequent quarters.
Affordability Concerns
Housing affordability has worsened after prolonged price growth, severely affecting the affordable housing segment. This has contributed to the geographical disparity in demand across different price segments.
Future Outlook and Opportunities
Infrastructure-Led Growth
The completion of major infrastructure projects, including metro extensions, GIFT City expansion, and the semiconductor hub development, positions Ahmedabad for sustained growth through 2025 and beyond.
Investment Recommendations
Emerging Areas: Localities like Vaishnodevi Circle, Science City, and Shilaj are gaining prominence due to excellent connectivity and modern amenities.
Commercial Real Estate: The expansion of IT, finance, and manufacturing sectors is driving demand for office spaces and commercial properties.
Luxury Segment: Areas near GIFT City, Gota, and S.G. Highway are positioned for significant appreciation as infrastructure projects mature.
Ahmedabad’s real estate market in 2025 reflects a mature, price-resilient market with strong fundamentals despite supply-side adjustments. The city’s strategic infrastructure investments, growing economic base, and planned urban development initiatives position it as a leading investment destination in India’s tier-1 real estate markets.