Reason Real Estate in Ahmedabad Bounced Back So Swiftly

According to industry watchers, real estate in Ahmedabad seems to have bounced back with gusto post demonetization. The number of transactions or sale deeds in Ahmedabad has increased by nearly 200 percent since demonetization. Houses and flats in Ahmedabad that are sold for more than ninety lakhs usually have a cash component of nearly 50 to 60 percent, hence demonetization was expected to cripple real estate in Ahmedabad yet despite the naysayers, property in Ahmedabad has swiftly recovered from the crushing effects of demonetization.

The Reasons for A Swift Bounce Back

Many within the government ministries have themselves been surprised by the rapid renascent of property in Ahmedabad post the note ban. Some have suggested that the reason why the number of transactions in houses and Luxury apartments in Ahmedabad bounced back as rapidly as they did is because many who sold property accepted the old demonetized currency notes even after they had been demonetized.  

Proving the Point

States such as Rajasthan, say Gujarat government officials, have suffered far more greatly than did the state of Gujarat post demonetization. Most market pundits were of the stark opinion that recovery of Gujarat’s real estate sector would take three to four quarters, yet they have been proven wrong.

To consider this point, one need only to become cognizant of the fact that in November only three thousand properties were transacted in Ahmedabad whereas in December this figure rose to over six thousand two hundred properties. The number of properties transacted in Ahmedabad more than doubled in a period of less than one month even as the December thirty first deadline, when all old notes would become far more difficult to convert to the newer currency, rapidly approached.  

Some of the best property in Ahmedabad may have been transacted in this period as many New projects in Ahmedabad witnessed a significant increase in sales of housing units, this at a time when even cities such as Gurgaon saw a drop of nearly forty to fifty percent in the number of housing units bought and sold.

Not all is Rosy Across Gujarat

While the number of property transactions in large urban centers such as Ahmedabad, Surat, and Vadodara rapidly bounced back only one month after demonetization, other regions of Gujarat such as Gandhinagar and much else of the state is still trading properties at a far lower than it did before the note ban.

Conclusion

Much of the property in Ahmedabad may have in fact been sold in December of last year to convert unaccounted for money into legal tender and legal assets. Had this not been the case, the bounce back in the sales of realty should have been even across the state and not just restricted to property in Ahmedabad and to a few large wealthy urban centers that were already renowned as pockets whose residents had much illicit income.

Post By : Shrikant Sain