Rath Yatra Drives Pre-Festival Momentum in Ahmedabad's Housing Market
Ahmedabad’s real estate scene saw a significant boost during this year’s Rath Yatra. Developers used the auspicious event to offer strategic discounts and flexible payment plans. Sales volumes are slightly below 2024 levels, but experts note increased foot traffic and buyer inquiries, hinting at a potential recovery post recent RBI rate cuts.
Developer Strategies: Discounts and Payment Flexibility
To draw in buyers, developers rolled out targeted promotions. Affordable housing projects in eastern Ahmedabad, especially in Nikol, Odhav, and Maninagar, offered discounts from ₹50,000 to ₹11 lakh. Even premium and luxury segments cut prices to clear inventory before expected market slowdowns, with some projects starting minimum investments at ₹30 lakh.
Flexible payment plans worked well for mid-segment projects, though this category still faces oversupply issues. “Affordable housing is sensitive to pricing, and the recent RBI rate cuts have encouraged people to consider homeownership,” said Dipak Patel, President of CREDAI Gujarat.
Market Segments: Affordability Fuels Recovery
Activity surged across different segments:
- Affordable Housing (1-3 BHK): Strong interest due to discounted prices (₹22–60 lakh range) and RBI policies. East Ahmedabad’s oversupply pushed developers to focus on sales via festival offers.
- Premium/Luxury Housing: Developers are focusing on selling luxury housing, especially in projects nearing completion, to attract high-net-worth buyers.
- Mid-Segment: Demand lagging despite RBI cuts, due to cautious investor sentiment and a focus on end-user needs.
RBI Policy Impact and Market Sentiment
The RBI’s recent interest rate cuts had a dual effect. Although mortgage rates are still higher than pre-pandemic levels, the reduction improved affordability perceptions. Developers say long-term aspirations like post-pandemic demand for upgraded living spaces are driving end-user participation.
“Investors are hesitant about new projects due to tough exits, which has indirectly boosted demand from genuine homebuyers,” explained a leading developer. This shift matches broader trends of prioritizing functionality over speculation.
Future Outlook: Cautious Optimism
While national sales dipped 20% YoY, Ahmedabad’s localized revival depends on maintaining price stability. With unsold inventory in key markets like Pune (down 15% since 2024), industry stakeholders remain cautiously optimistic. “Sustained demand depends on developers balancing pricing strategies with buyer sentiment,” stated Haresh Vasani, President of the Ahmedabad Builders Association.
Conclusion
Rath Yatra has breathed new life into Ahmedabad’s housing market through targeted promotions and policy responses. However, sustainable growth will require addressing mid-segment issues and aligning with post-pandemic purchasing priorities.