Gujarat has registered construction projects worth a total market value of Rs 3.17 lakh crore in the last four years, translating into 6,305 projects in residential, commercial and plotted development categories.
Data compiled by the Confederation of Real Estate Developers’ Associations of India (Credai) also states that of the construction commitments of 91 crore sq feet over the last four years, 2021-22 saw the maximum, with 26 crore sq feet of development projects getting RERA-registered.
Experts say Gujarat’s realty sector has seen steady demand. “Covid-19 lockdown affected the economy and 2020-21 saw a drop in the number of projects and project cost. However, there was a jump in new demand post-Covid, especially for housing which led the project launches. There has been a strong demand after the pandemic,” said Tejas Joshi, president, Credai Ahmedabad.
Top five districts – Ahmedabad, Gandhinagar, Rajkot, Surat and Vadodara – have 82% share in total projects in RERA and a 93% share in the market value of projects. Ahmedabad is the biggest contributor to the total Gujarat volume with a share of 29% in the number of projects and 42% in project value in the last four financial years. The residential segment has seen the highest RERA registrations.
Realty experts also attribute the rise in project cost and market value to increased construction cost over the last three years. “Construction cost has grown significantly in the last three years due to rise in cement and steel prices and labour cost. Besides, property prices have generally increased across the country, including Gujarat,” said Taral Shah, MD of a construction company.