Differences Between Property in Ahmedabad and in Tier 1 Cities

The city of Ahmedabad may not rank alongside Mumbai in stature, but the price of property in Ahmedabad is not too dissimilar to the price of property in the largest cities in India. Currently, Ahmedabad carries the tag of a metropolitan Indian city, this means that Ahmedabad is financially more important than cities such as Jaipur, Bhopal, Surat, Jodhpur etc. all of which are classified as tier 1 cities.


Difference Between Ahmedabad and Tier 1 Cities

Just as in Mumbai, in Ahmedabad there are a large number of properties that are priced over one crore. Many New projects in Ahmedabad are even priced much higher than one crore. However, the neighbouring city of Surat does not have as many properties that are priced over one crore as does Ahmedabad. Other cities that are ranked as tier 1 cities such as Bhopal also have far fewer properties that are valued at one crore. Hence while Ahmedabad may not be the most important metropolitan city, it is head and shoulders above tier 1 cities.

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Will Tier 1 Always Remain So?

China has 200 cities the size of London and within twenty years India will supplant China and become the most populous country on Earth. Tier 1 cities need not always remain less important than metropolitan cities. Already smaller cities are breaking out; builders in Ahmedabad have a presence in smaller cities and hence bring their big city expertise to cities that could be on the verge of breaking out.


Metropolitan Cities Vs Tier 1 Cities

One of the biggest differentiators between Metropolitan and Tier 1 cities is the amount of money in the city or the cities GDP. The GDP of a Tier 1 city is usually 50 percent that of the smallest Metropolitan city. However, over the past few years, the GDP of tier 1 cities has been rising and the day may not be far when metro cities such as Pune or Ahmedabad are supplanted by newcomers.


The household wealth in cities such as Surat and Jaipur has been rising over the past few years. This means that average households have more disposable income in these cities and that they may spend this disposable income on property. The top builders in Ahmedabad have already ventured outward to cities such as Surat, the day may not be far when builders in Surat venture forth from Surat to other cities to build.

Post By Shrikant sain


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