Ahmedabad emerges as India’s most affordable big-city housing market amid rising prices

Amid India’s red-hot real estate boom, Ahmedabad has quietly stood out as a model of affordability and stability. According to PropTiger.com’s Real Insight Residential: July–September 2025 report, the city remained the cheapest major housing market in the country, with average property prices at ₹4,820 per sq. ft. in Q3 2025—up 7.9% year-on-year and 1.9% from the previous quarter.

While property values across India’s eight largest cities rose between 7% and 19%, led by Delhi-NCR, Bengaluru and Hyderabad, Ahmedabad’s growth was moderate, backed by end-user demand and controlled supply.

Steady growth

The PropTiger report attributes the national price surge to strong end-user demand in premium segments, elevated construction costs, and limited availability of ready-to-move homes. Ahmedabad fits this pattern but at a steadier, more sustainable pace.

At Rs 4,820 per sq. ft., the city’s homes cost nearly 45% less than Pune’s, about half of Bengaluru’s, and a fraction of Mumbai Metropolitan Region’s (MMR) ₹13,250 per sq. ft. average. The consistent 7.9% annual rise signals robust absorption without speculative overheating.

Developers describe Ahmedabad as a buyer-led market—fuelled largely by locals purchasing for self-use rather than investors chasing short-term gains. Its limited price fluctuations reflect this end-user orientation, unlike Hyderabad’s 13% annual jump or Delhi-NCR’s steep 19% spike.

“The price appreciation in NCR is not speculative; it is driven by real demand, end-user confidence, and a clear shift towards quality developers and organised supply,” said Deepak Kapoor, Director, Gulshan Group.

Western cluster dominates

Nationwide, new housing supply across the top eight cities dipped 0.1% year-on-year to 91,807 units in Q3, though launches grew 9.1% sequentially. MMR led with 26.9% of new supply, followed by Pune (18.7%) and Hyderabad (13.6%). Ahmedabad, too, remained an active player in this western cluster—part of a corridor drawing steady institutional and individual investment, yet avoiding the steep price escalation seen in Mumbai and Pune.

Developers are increasingly aligning launches with real buyer demand, skewing towards premium and luxury segments. In Ahmedabad, this shift is visible but restrained—fewer, high-quality projects catering to upwardly mobile residents within the city.

Affordability major key

Affordability remains Ahmedabad’s biggest strength. A 1,000 sq. ft. apartment costs roughly ₹48 lakh—almost half of Bengaluru’s Rs 89 lakh and far below MMR’s Rs 1.32 crore average. Despite rising prices, the city remains one of the few major metros where homeownership is attainable without excessive borrowing.

Even as overall national sales value rose 14% and volumes slipped 1% to 95,547 units, Ahmedabad benefitted from the same “premiumization” trend—larger, better-built homes without inflated prices.

Backed by ongoing infrastructure upgrades, including GIFT City, SP Ring Road, and Metro expansion, Ahmedabad’s housing market appears well-positioned for steady, sustainable growth. Its combination of affordability, stability, and connectivity makes it an increasingly attractive bet for both end-users and long-term investors.