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Ahmedabad Developers Hike Property Rates Amidst Supply Shock
1 Jul
Summary
- Construction materials costs rose 30-50% due to Middle East conflict.
- Ahmedabad property prices increased by 5-10% starting this month.
- Supply chains may take 9-12 months to fully recover.
The construction industry is facing significant challenges, leading Ahmedabad to become the first Indian city to implement property price hikes starting this month. Gandhinagar has also enacted a similar increase.
This surge in prices is directly linked to the West Asia crisis, which has disrupted supply chains for essential construction materials. These costs have escalated by approximately 30% to 50%, putting substantial pressure on the real estate sector.
Developers in Ahmedabad have announced a price increase of between 5% and 10%, varying by project stage. This decision followed a meeting of over 400 developers, as individual developers had already begun increasing rates. Similar price revisions are expected in other Gujarat cities.
Experts note that supply chain restoration is estimated to take between 9 to 12 months, even with recent geopolitical developments. Developers are requesting timeline extensions from RERA authorities due to project delays caused by material non-availability and labor shortages.
