Recently, CREDAI Ahmedabad has predicted the high probability of a price hike for under-construction projects. This can be foreseen as the global impact of the West’s conflicts. The current geopolitical situation has affected the supply chain of raw materials. Ahmedabad real estate market can see an increase of 5 -10% in project price.

Disrupted supply chains may affect raw materials like cement and PVC pipes, and labour shortages can also lead to increased prices.

How Global Conflicts Impact Ahmedabad Real Estate


Real estate development is connected to global markets. Aluminum, glass, electrical systems and specialised fittings often depend on the international supply network. Whenever geopolitical tension arises, delays in the supply of crude oil, shipping en route, and increased transportation costs affect the price of raw materials.

Currently, the West Asia market is experiencing increased market fluctuations and raw material price rises. It will impact real estate developers and their residential and commercial projects’ costs. This can create indirect pressure on multiple segments.

CREDAI Ahmedabad Predicts Potential Price Hike in Prices


CREDAI Ahmedabad recently indicated that increasing pressure and input costs directly influence the price of real estate projects. Due to labour constraints, projects continue to be delayed.

Real estate developers have also stated the issue of labour unavailability due to various challenges and its impact on project delays.

Also, due to disruptions in crude oil, many industries were affected for a short duration of time, and many sectors have seen a surge in raw materials prices.

For buyers and investors, this creates an important consideration: the cost of purchasing a property today may be significantly different from the cost of purchasing the same property six months from now.

Opportunities in Residential and Commercial Property Investment


For many years, the real estate market in Ahmedabad has been performing well, especially the mid-range housing properties. Modern homebuyers have shown their interest in spacious houses/apartments full of amenities. Apart from this, the need for spacious residential space with green surroundings, gated communities, and communities is preferred over others.

Ahmedabad has experienced this shift and witnessed increased rental yields. People also start to look for premium residential and commercial properties for investment. Growing demand for luxurious bungalows has also been seen, that offers comfort and exclusivity. Areas experiencing increasing residential projects are Shilaj, Bopal, Ognaj, Shela, Chandkheda, Ambli and others.

The commercial sector has also shown a boost in recent years, with demand for premium commercial property in Ahmedabad. Areas like Prahlad Nagar, Bodakdev, Pakwan Cross Road, Iscon Cross Road, SBR, and others have become the new hub of commercial properties.

Real Estate Developers in Ahmedabad have asked GujRERA to extend the project deadline by six months, as due to disruptions, projects are more likely to get delayed in completion.

Highlights of the Blog

  • Homebuyers can observe a price hike of 5 – 10% from July 1.
  • Raw materials like cement, steel, tiles, aluminum, and PVC pipes have spiked and directly influence the overall price of the project.
  • Real Estate Developers have requested a 6-month extension of project completion.

Final Thoughts


Ahmedabad’s long-term growth has not changed; however, recent scenarios may increase project cost. The recent observations from CREDAI Ahmedabad serve as an important reminder that global events can directly influence local property markets. Raw material and labour constraints have directly challenged the project delivery time. For buyers considering investing in premium commercial property in Ahmedabad or buying luxurious bungalows, it is important to understand the recent market trend before finalizing the decision.

D&C Developers are evolving their principles and projects as per the buyer’s demand. We offer residential and commercial projects in the premium location of Ahmedabad.

Reference link–


According to reports published by The Times of India and The Indian Express, CREDAI Ahmedabad has indicated that rising material costs and supply-chain disruptions could result in property price increases of 5-10% in the coming months.

https://timesofindia.indiatimes.com/city/ahmedabad/ahmedabad-homes-to-cost-5-10-more-from-july-1-as-construction-costs-surge/articleshow/131753712.cms

https://indianexpress.com/article/cities/ahmedabad/property-prices-hike-west-asia-conflict-credai-10741719/lite/

FAQs


1. How can the most common conflicts impact real estate in Ahmedabad?
A. Due to various restrictions, CREDAI Ahmedabad has predicted a rise in raw materials and thus an overall increase in the price of the under-reconstruction project.

2. What is CREDAI?
It is the official city chapter of the Confederation of Real Estate Developers’ Associations of India, representing local builders and working with government bodies to shape real estate in Ahmedabad.

3. Do D&C developers offer residential and commercial projects in Ahmedabad?
Yes, we offer both residential and commercial projects in various prime locations of Ahmedabad.