A look into the real estate figures of Ahmedabad from July-December 2016.

1. H1 2016, a recap
- A recovery predicted
INDIA
REAL ESTATE
JULY – DECEMBER 2016
AHMEDABAD

2. AHMEDABAD
REAL ESTATE

3. H1 residential market recap
LAUNCHES GREW BY 9%,
SALES JUMPED BY 10% YoY IN H1 2016

4. We predicted 27% growth in
launches and 15% growth in sales
for H2 2016,
but Ahmedabad suffers a setback

5. New launches plunge by 31%;
Sales decline by 18%
Half yearly trend in launches and sales
14,051
14,569
11,938
8,019
9,075
7,400
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
No.ofunits
17,874
9,522
14,058
4,991
7,491
5,200
-
4,000
8,000
12,000
16,000
20,000
No.ofunits
31%
18%

6. Drastic fall in H2 2016 has
pulled the annual numbers to
below 2015 performance

7. New launches dip by 10%;
Sales witness a relatively restrained decline of 5%
Yearly trend in launches and sales
19,424
29,694
30,577
25,592
18,490
16,826
15,956
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2010 2011 2012 2013 2014 2015 2016
No.ofunits
33,175
45,120
30,758
23,867
14,011
15,553
14,009
-
10,000
20,000
30,000
40,000
50,000
2010 2011 2012 2013 2014 2015 2016
No.ofunits
10%
5%

8. Overall, the city witnessed a fall in
new launches –
South and West experience
maximum dip in their share

9. North accounts for almost half of the
launches and East also sees some growth
Micro-marketwise half yearly trend in share of launches
19%
15%
35%
8%
22%
17% 17%
46%
2%
18%
0%
10%
20%
30%
40%
50%
Central East North South West
H2 2015 H2 2016

10. While demand slackens in the city,
North and East leads the share in sales

11. Affordable supply and proximity to the major
employment hubs drive the demand in North
Micro-marketwise half yearly trend in share of sales
9%
30% 30%
14%
17%
9%
28%
30%
12%
22%
0%
5%
10%
15%
20%
25%
30%
35%
Central East North South West
H2 2015 H2 2016

12. QTS holding steady since early 2016 -
2.1 years to offload the unsold inventory
QTS trend
7.0 7.0
7.3
8.3 8.4
8.2
8.7
8.3 8.5 8.5 8.6
4
5
6
7
8
9
10
No.ofQuarters
Unsold inventory
at 37,840 units in
2016

13. Impact of
Demonetisation

14. Ahmedabad hit hard - New launches plunge by
69% in Q4 2016 YoY; Sales decline by 43%
Quarterly trend of new launches and sales
6,296
2,725
2,210
2,781
6,262
1,800
3,595
3,895
4,228
4,581
4,000
1,200
6,011
4,460
4,074 3,945
4,251
3,500
4,175
4,901
4,449
4,107
4,600
2,800
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
No.ofunits
Launches Sales

15. Q4 revenue loss for both
State exchequer and industry
Average # units sold in
Q4 2014 & Q4 2015 4,423
# Units sold in Q4 2016 2,800
37% fall
in sales
Notional REVENUE LOSS
to real estate industry
INR 500 cr
State government notional
LOSS ON STAMP DUTY
INR 20 cr

16. Key takeaways
Launches go downhill, sales weaken YoY in H2 2016
Affordable prices attracting buyers in its peripheral markets such as
New Ranip, Tragad, Chand Kheda and Motera
Uncertainty likely to continue for the next quarter
Reduction in home loan interest rates, RERA, GST and ‘possible’ tax
benefits in the upcoming budget likely to bring in a ‘feel good factor’
among buyers

17. Download the complete report from the link below:
bit.ly/IREH216-SS