Prices of houses to rise after LS polls
High land prices and a 73 per cent dip in new residential-project launches in the last four years since 2015 will push real-estate developers to increase prices of housing units in Ahmedabad after LokSabha elections, predict global property consultant Knight Frank on Tuesday. The unsold inventory in Ahmedabad, which stood at 41,000 units at the beginning of 2015, has fallen sharply to just 14,800 units by the end of December 2018.
“This has been achieved by chocking the number of new launches,” said BalbirsinghKhalsa, National Director of the consultancy firm. Developers in Ahmedabad who used to launch over 15,500 units annually during 2015, only launched 4,790 units and 4,167 units respectively in 2017 and 2018. “If this trend continues then there will be hardly any stock left to sell in the coming months. This will give a chance for developers to hike the prices. This is expected to happen once the LokSabha elections are over,” Khalsa added. The report also pointed out that some of the new policy initiatives like the On-line Development Permission System, which provides building permission, — had teething problems — led to a dip in new projects being launched.