Vadodara's real estate scene has seen a huge change because of Prime Minister Narendra Modi's big Housing for All Mission. The result? More than 18,000 homes backed by the government that have changed how the city's property market works.
Government Brings in Lots of Housing
The numbers are amazing. VUDA built 8,140 homes from 2017 to 2025, while VMC completed 9,733 houses under the Pradhan Mantri Awas Yojana and in-situ projects. The government is still going strong - another 7,306 units are being built now, with a big Rs. 711 crore investment.
This huge addition has affected the whole property market in Vadodara. Municipal engineer Nilesh Parmar says prime spots are the main attraction for these government projects, drawing families who might find it hard to afford good housing.
Private Builders Face Tough Times
The government's strong push for housing has made private builders fight for prices they didn't plan for. The government offers affordable projects in good locations as compared to other developers.
The data shows just how big this change is: 45% of residential projects in Vadodara are now affordable housing over the past five years. From 2020 to 2022, while the government started 130 projects, private builders launched 1,926 projects, creating 2.56 lakh housing units.
Real Estate Market Stays Strong
Vadodara's real estate market is strong. Places like Sama and Old Padra Road have seen price growth of over 35% in five years, while areas like Gorwa offer rental yields of 8.1% - almost double what tier-1 cities usually get.
With the PMAY-U deadline extended to December 31, 2025, this change will keep shaping Vadodara's property market, making homeownership possible for many more families and keeping private developers competitive.