Ahmedabad: Gujarat's real estate sector has witnessed a sharp rise in prices of residential units—up by 34% since 2017–18, driven by post-Covid demand and escalating input costs, according to a new report released by the Gujarat Real Estate Regulatory Authority (GujRERA).The report, ‘Gujarat Real Estate Landscape: A Comprehensive Analysis of RERA Implementation and Infrastructure Growth', reveals that the average price of homes rose from Rs 40,231 per sq m in 2017–18 to Rs 54,139 per sq m in 2024–25, peaking at Rs 54,187 in 2023–24.The residential category assessed in the report includes a range of housing types such as apartments, bungalows, and row houses.

Industry experts attribute the surge to a steep rise in land acquisition and construction costs over the past few years.

Viral Shah, vice president of CREDAI Ahmedabad, said, "Land prices have increased sharply, and construction costs have also risen drastically over the past few years. This has led to an overall spike in residential prices, although developers have not been able to pass on the full burden to buyers, thereby compressing profit margins.

"Residential construction costs alone jumped from Rs 26,677 per sq m in 2017–18 to Rs 40,691 in 2024–25, reaching a high of Rs 41,895 per sq m in 2023–24.

The report also notes that major districts in the state have not only seen a sustained price increase but also faced greater year-to-year fluctuations.In Ahmedabad, the average unit residential cost tells a more volatile story. From Rs 43 lakh in 2017–18, the price dipped to Rs 31 lakh in 2021–22 before surging to Rs 79 lakh in 2023–24. The rate moderated slightly to Rs 56 lakh in 2024–25. "This price trajectory reflects a maturing market responding to macroeconomic shifts, with developers balancing affordability and rising demand," the report noted."The year-on-year average construction cost per square meter (carpet area) in Ahmedabad across all segments from FY 2017–18 to FY 2024–25 reflects a general upward trend, influenced by rising material costs, labour charges, and market demand. In the residential and group housing sector, costs increased from Rs 30,659 per sq m in 2017–18 to Rs 43,443 in 2024–25, with a notable peak at Rs 47,341 in 2023–24, indicating a steady rise driven by urbanisation pressures," the report stated.GFX sent to designersTable: Residential property pricesDistrict 2017-18 2020-21 2022-23 2023-24 2024-25Ahmedabad 46,257 51,120 57,581 63,571 63,488Vadodara 39,038 45,099 53,375 60,731 62,028Surat 38,205 40,629 53,641 55,782 53,361Rajkot 29,940 30,070 32,899 37,597 35,776Gandhinagar 34,433 37,738 74,339 52,832 52,688Other Dist 26,714 28,531 34,355 33,107 36,496Source: GujRERA, prices in Rs/sq m)