Ahmedabad Home Prices Set To Rise From July 1 As Construction Costs Surge
AHMEDABAD | June 16, 2026 Homebuyers planning to purchase an under-construction property in Ahmedabad may have to pay significantly more from July 1, as developers prepare to increase prices by 5-10% following a sharp rise in construction costs.
The decision was taken during a meeting of nearly 400 developers organized by Credai Ahmedabad. The move comes after months of rising prices for key construction materials, with some products reportedly becoming up to 80% more expensive due to supply disruptions linked to the ongoing West Asia conflict.
For prospective buyers, the development could mean higher booking prices, increased project costs and a narrower window to lock in current rates.
Why Are Ahmedabad Property Prices Increasing
According to developers, the cost of essential construction materials including cement, steel, aluminium, tiles, paints, PVC pipes and ready-mix concrete has increased sharply in recent months.
Industry representatives claim that overall construction expenses have risen by nearly 20-25%, making it difficult for developers to absorb the additional costs any longer.
As a result, developers have decided to pass part of the burden to buyers through a 5-10% increase in prices of under-construction projects starting July 1.
What It Means For Homebuyers
The proposed price increase is expected to primarily affect buyers considering under-construction residential projects.
For example, a property priced at ₹80 lakh today could become ₹84 lakh to ₹88 lakh after July 1 if developers implement the announced hike.
Buyers who are already evaluating projects may find it beneficial to compare current prices with revised rates before making a decision.
However, the actual increase could vary depending on the stage of construction, location and developer pricing strategy.
Will Existing Buyers Be Affected
Developers have indicated that the increase will apply mainly to future sales.
Homebuyers who have already booked units under existing agreements are generally expected to remain protected by the terms and conditions of their purchase contracts. Buyers should still review their agreements carefully to understand any clauses related to escalation charges or construction-linked payments.
Developers Seek More Time To Complete Projects
Apart from raising prices, Credai Ahmedabad has also approached GujRERA seeking a six-month extension for project completion timelines.
Developers argue that volatile raw material prices and irregular supply of construction materials have made project planning increasingly difficult.
Industry representatives believe that even if supply conditions improve immediately, it could take several months for pricing and availability of materials to stabilize.
Can Ahmedabad Real Estate Demand Remain Strong
Despite the proposed increase, developers remain optimistic about demand in Ahmedabad's housing market.
The city continues to benefit from ongoing infrastructure development, expanding employment opportunities and large-scale urban projects that support long-term housing demand.
Industry experts believe these factors could help maintain buyer interest even as property prices move higher.
Should Homebuyers Rush To Buy Before July 1
The announcement may encourage some buyers to accelerate purchase decisions to avoid higher prices.
However, experts advise buyers to focus on project quality, developer credibility, financing costs and long-term affordability rather than making decisions solely based on expected price increases.
Comparing multiple projects and reviewing all costs carefully remains essential before booking a property.