City Beat: Ahmedabad Bucks The Trend; Home Sales Up in Q2 [Video]
At a time when major cities of the country have witnessed a decline in home sales, Ahmedabad is bucking the trend. According to a PropTiger DataLabs report for the second quarter of the financial year 2016-17, the city saw an increase of seven per cent in sales over the previous quarter. At 57 per cent, new launches, too, went significantly high in the same period. When compared to other cities, the inventory overhang also remained low at 29 months.
According to another monthly report by PropTiger DataLabs, homes sales shot up 14 per cent in September over the previous month. New launches, however, declined 58 per cent over the same period. The report cites stagnant property prices, pressure on developers owing to huge unsold stock and the liquidity crunch as reasons behind this decline in new launches.
Meanwhile, as a result of the Central government's decision to demonetise currency notes of Rs 500 and Rs 1,000, the Ahmedabad civic body's property tax collections have reportedly gone up. As the civic body is accepting old currency notes, people are lining up in huge numbers to pay taxes. According to media reports, the Ahmedabad Municipal Corporation had collected Rs 19.06 crore as property tax payments till Monday. When compared to the previous financial year, the civic body's income from property tax had gone up by about 28 per cent till November 14. Earlier, the Ahmedabad Municipal Corporation had found large-scale undervaluation of property tax across all five zones.
The civic body in Ahmedabad is not alone when it comes to a surge in property tax collections. Civic bodies of other cities too have seen a similar trend after Prime Minister Narendra Modi announced that his government is demonetizing high-value old currency notes, a move aimed at purging the economy of unaccounted money.