Ahmedabad homebuyers to face higher costs as builders announce property price hike from July 1

Homebuyers in Ahmedabad may have to pay more for residential properties from July 1, 2026, after developers decided to increase prices citing rising construction costs and supply chain disruptions.

At a meeting attended by more than 400 builders, Confederation of Real Estate Developers' Associations of India (CREDAI) Ahmedabad’s members resolved to raise prices by 10% for newly launched projects and by up to 5% for ongoing projects, depending on their stage of completion.

According to developers, the increase has been driven by a sharp rise in the cost of construction materials, with prices of key raw materials reportedly climbing by 30% to 50% amid disruptions in global supply chains linked to geopolitical tensions in the Middle East.

Under the new pricing structure, projects that have recently been launched will see a direct 10% increase in rates, while projects nearing completion are expected to witness price hikes of up to 5%.

Builders also cited labour shortages as a major challenge. They said many migrant workers from other states have not returned, slowing construction activity and making it difficult to complete projects on schedule. Developers fear delays could expose them to penalties under RERA regulations governing possession timelines.

Industry representatives said Ahmedabad's property prices remain relatively lower than those in several other major cities and argued that the proposed increase is a result of factors beyond developers' control.

CREDAI Ahmedabad had earlier announced that prices would remain unchanged until June 30, 2026, to provide a window for prospective buyers. With that period ending, the revised rates are set to take effect from July.

Developers also said that even if geopolitical tensions ease, it could take between nine and 12 months for construction material supply chains to return to normal.

The industry body has reportedly approached the government and RERA authorities, seeking an extension of project completion deadlines under the force majeure provisions of the RERA Act, citing the extraordinary circumstances affecting the sector.