Ahmedabad, Jan 6 (PTI) Residential unit sales and office transactions in Ahmedabad recovered by 58 per cent and 66 per cent, respectively, in the second half of 2020 compared to the first half, according to a report by Knight Frank India.
The residential unit sales and office transactions also saw a significant improvement during the fourth quarter of 2020 compared to the previous quarters of the year in Ahmedabad, which emerged as the most affordable market among the top-8 cities in India, as per the report released on Wednesday.
However, annually, sales of residential units and office transactions registered a decline of 61 and 15 per cent, respectively, in 2020, said the international property consultant in the report.
Compared to the first half of 2020, launches of new residential projects improved 81 per cent in the second half of the year, even though annual launches of new projects declined 36 per cent to 7,372 as compared to 11,487 launches in 2019, said the report.
As for office transactions, due to the coronavirus-incuded lockdown, completion of new projects witnessed a slight dip of three per cent in the second half of 2020 to 2.5 million square feet, compared to 2.6 million sq ft in the first half, it said.
However, compared to 2019, 2020 saw a five per cent jump in completion of office spaces, it said.
Half-yearly sales of residential units recovered 58 per cent in the second half of 2020 to 3,986 units, compared to 2,520 units in the first half of 2020.
The sales had dropped 70 per cent in the first half of 2020 as compared to the second half of 2019, it said.
At the same time, annual sales in 2020 declined considerably to 61 per cent to 6,506 units compared to 16,713 units in 2019.
But, the share of affordable housing sustained to 31 per cent in the second half of 2020, compared with 27 per cent in the year-ago period, it said.
Recovery in sales of residential units can be due to improving business environment, visibility of vaccines, low home loan rates and price discounts, said the report.
Stamp duty cuts like the one applied by the Maharashtra government could have further improved sales, it added.
'While Ahmedabad is the most affordable market among the top-8 cities, residential demand has still been adversely impacted by the loss of livelihood and the threat of potential income disruption,' said Knight Frank India Branch Director (Ahmedabad) Balbirsingh Khalsa He, however, added that the resumption in business activity, low home loan rates and aggressive negotiations by developers have caused a significant pick-up in demand towards the end of the year.
In terms of office transaction, there was a 15 per cent annual decline to 1.3 million square feet in 2020, compared with 1.5 million sq ft a year ago.
At the same time, the city registered a recovery of 66 per cent in transactions in the second half of 2020 compared to the first half, even though it remains lower compared to the second half of 2019, said the report.
Quarterly also, the fourth quarter of 2020 witnessed a spike in transaction compared to the first three quarters, riding on latent demand.
Lockdown increased office vacancy rate to 45 per cent in 2020; and with this, the rent dropped to Rs 41.1 per sq ft compared to Rs 43 per sq ft, it said. PTI KA GK HRS