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Numerous individuals in Gujarat are now fulfilling their aspiration of owning a personal residence. Although property prices and interest rates have increased, there has been a significant increase of 60 percent in the amount of housing finance loans approved during the fiscal year 2023 as compared to FY 2022. According to data from the State Level Bankers' Committee (SLBC), new home loan disbursements amounted to Rs 42,048 crore during the current fiscal year, which is a considerable rise from the previous year's Rs 26,299 crore.
According to the report, there was a notable surge in the count of individuals who received new home loan payments, with the figure moving up from 2.73 lakh to 4.26 lakh, an increase of 56 percent. According to bankers and developers, the surge in home sales can be attributed to customers' eagerness to enhance their current living spaces and the optimistic outlook within the real estate industry.
The real estate sector has seen a surge in investment. Furthermore, fresh initiatives are being initiated to cater to these requirements. Ever since the lockdown commenced, individuals have become aware of the significance of acquiring a new residence or an extra piece of real estate. According to a source from SLBC Gujarat, the desire to buy new homes has seen a surge. The surging rate of people purchasing second homes has resulted in an amplified need for home loans.
Bankers also recognize the increase in requests for home loans coming from the younger generation of homebuyers. Many young professionals with ample expendable cash have established residency in Ahmedabad. Salaried professionals are a group of customers who often purchase new homes as a means of saving taxes. Therefore, it is common for people to choose home mortgages as a means of tax savings, leading to an increase in demand, according to an SLBC representative.
Ahmedabad property prices have risen 10–15 percent in the past year. In April 2022, the Ahmedabad chapter of CREDAI, the Confederation of Real Estate Developers' Association of India, declared a hike of Rs 400–500 per square foot in Ahmedabad, prompting other developers in different regions of the state to follow suit. Developers believe the rise in housing demand in Ahmedabad is due to increased migration and the post-pandemic desire for new homes.
According to Ajay Patel, chairman of CREDAI Gujarat, residents of Ahmedabad, Gandhinagar, Vadodara, and Surat are now desiring a better quality of life with better amenities to improve their lifestyle. High-end properties in all major cities in the state have strong demand. The growing demand for improved facilities like pools, fitness centres, and running trails is fuelling the development of new projects.
Young professionals moving to Gujarat drive demand for new homes. More investments in GIFT City have resulted in increased demand for property in Ahmedabad and Gandhinagar due to an influx of young professionals.
A lot of people from various nearby regions like Saurashtra, Chorotar, and northern Gujarat are relocating to Ahmedabad because of their desire for improved work prospects and a higher standard of living. According to Patel, wealthy people residing in these areas are putting their money into real estate in Ahmedabad, which is increasing the requirement for new residences.
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