Ahmedabad Housing Supply Plummets Despite GIFT City Investments Premium Demand Rising Fast

Ahmedabad’s housing market is showing signs of strain despite ambitious developments in the neighbouring GIFT City, a new report by Proptiger indicates. While Mumbai, Pune, and Hyderabad together accounted for nearly 60% of new housing launches in India’s top eight cities during Q3 2025, Ahmedabad contributed just 5.1% of new supply, highlighting a persistent lag in residential development.

Industry experts attribute the slowdown to a combination of pricing pressures and cautious buyer sentiment. Despite offering the lowest average rate per square foot among major cities at Rs 4,820, Ahmedabad’s Q3 2025 sales fell to 8,889 units, a 5% decline year-on-year, while new launches dropped 28.7% to 4,677 units. “Mid-segment properties dominate demand, but affordability constraints are limiting transaction volumes,” an official said.By contrast, cities such as Mumbai and Pune maintained significant supply despite market volatility, with new launches contributing 26.9% and 18.7% of inventory, respectively. Chennai and Kolkata posted remarkable year-on-year growth in new launches, surging 105% and 129%, signalling revived developer activity.The report further highlights a divergence between volume and value. Across the top eight cities, total transaction value rose 14% to INR 1.52 lakh crore, reflecting a shift toward premium housing. Ahmedabad’s limited participation in this trend has led to growing unsold inventory in higher-value brackets, particularly INR 2–5 crore homes, which rose sharply by 47% year-on-year.CREDAI data suggests developers are deliberately postponing new project launches, with a 61% drop in units introduced in the first half of 2025, even as primary market sales edged up 3% and average prices climbed 7%.

Observers note that while GIFT City continues to attract investment, local buyers are hesitant due to broader economic pressures and job uncertainty, leaving some developers struggling to close deals.Analysts say Ahmedabad’s market now faces a crucial juncture. Without a recalibration of prices to align with average household affordability, the city risks stagnating while other metropolitan regions expand. Balancing supply with sustainable, inclusive housing development will be essential for long-term growth.

Ahmedabad Housing Supply Plummets Despite GIFT City Investments Premium Demand Rising Fast