The residential real estate market in Ahmedabad maintained its positive momentum during the second half of 2025, registering a steady increase in sales despite a slight moderation in new project launches, according to a recent industry analysis.
Sustained Sales Growth and Market Dynamics
Data from the report by Knight Frank India reveals that housing sales in the city climbed 3% year-on-year to reach 9,382 units in the July-December period of 2025. For the entire calendar year 2025, residential transactions witnessed a 2% annual growth, totaling 18,752 units. This consistent performance underscores the underlying demand strength in one of India's most affordable major urban markets.
On the supply front, developers exhibited a cautious approach. New residential launches during H2 2025 were recorded at 11,307 units, marking a marginal decline of 4% compared to the same period in the previous year. This disciplined supply addition indicates a strategic shift by builders focusing on aligning inventory with actual demand.
Rising Premiumization and Price Trends
A significant trend highlighted in the report is the clear shift in buyer preference towards higher-value, lifestyle-centric properties. The market is moving decisively upscale.
The segment priced between Rs 50 lakh and Rs 1 crore emerged as the dominant force, accounting for 46% of all residential sales in H2 2025. Meanwhile, the share of homes costing above Rs 1 crore expanded to 25% of total sales. This underscores a growing consumer acceptance of premium high-rise living, especially in corridors like SG Highway and SP Ring Road. The sub-Rs 50 lakh category contributed 29% to the sales volume.
This preference was mirrored in new launches, where the Rs 50 lakh to Rs 1 crore bracket held a 50% share of supply, and units above Rs 1 crore constituted 26%. Despite this move towards premiumization, Ahmedabad retained its status as one of the most affordable top-tier cities, with average residential prices seeing a modest 3% increase to Rs 3,120 per square foot.
Inventory Health and Office Market Snapshot
Although unsold inventory rose by 10% year-on-year to 36,231 units, the overall health of the market remains comfortable. The key metric of Quarters-to-Sell (QTS) stood at 7.6, which translates to less than two years of inventory at the current absorption rate—a level considered manageable in real estate cycles.
The report also pointed to continued infrastructural support for growth. Higher FSI norms and enhanced metro connectivity are fueling residential development in western and northern micro-markets, including SG Highway, Bopal, Chandkheda, and Motera.
In a parallel development, Ahmedabad's office market recorded leasing of 1.2 million square feet in H2 2025. While this reflected a 14% year-on-year correction, it was primarily due to an exceptionally strong performance in the corresponding period of 2024. For the full year 2025, office space transactions stood at 2 million square feet, remaining above post-pandemic averages despite a 34% decline from the 2024 peak.
The combined data paints a picture of a stable and evolving Ahmedabad real estate landscape, where growth is increasingly driven by quality and aspirational living, even as the market retains its fundamental affordability.
