CREDAI Ahmedabad Flags Builder-Led Price Hike From Mid-2026
For months, Ahmedabad's homebuyers enjoyed a quiet assurance: prices would hold steady while the city's builders absorbed rising costs on their own ledgers. That assurance has now run its course. 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. The decision was not made quietly in a boardroom but at a large gathering that speaks to how widely felt the pressure has become. 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.
The arithmetic behind the decision is straightforward, even if the reasons are anything but. 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%. Crucially for buyers still weighing their options, CREDAI Ahmedabad had earlier announced that prices would remain unchanged until June 30, 2026, to provide a window for prospective buyers, and with that period ending, the revised rates are set to take effect from July.
What pushed an industry known for gradual, incremental pricing towards a collective, city-wide correction? 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. Other industry estimates paint an even sharper picture, with developers highlighting that essential materials such as cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing products have seen sharp price increases, and some inputs becoming 30% to 60% more expensive since the onset of the conflict-driven supply disruptions. Ankur Desai, Secretary of CREDAI Ahmedabad, has been quoted noting that construction inputs have risen 30–80%, and overall building cost is up by 20–25%, a burden builders say they can no longer quietly carry alone.
Labour has compounded the material squeeze. Builders also cited labour shortages as a major challenge weighing on project execution, even as suppliers show little appetite for long-term commitments on pricing. Developers have gone so far as to warn that even if geopolitical tensions ease, it could take between nine and 12 months for construction material supply chains to return to normal, suggesting this is not a fleeting blip but a structural shift buyers should plan around.
The ripple effects extend beyond price tags on brochures. 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. Separately, CREDAI Ahmedabad has reportedly requested a six-month extension from GujRERA, citing continued pressure from rising raw material prices and intermittent shortages of key construction inputs, a request that, if granted, would mean some under-construction homes take longer to reach handover than originally promised.
Set against this backdrop, Ahmedabad's broader price story has already been quietly rewriting itself. The city's average residential rate stood near ₹4,820 per square foot in recent readings, with premium micro-markets commanding considerably more — Ambli near ₹10,000 per square foot, Sindhubhavan Road around ₹9,000, and Thaltej near ₹8,000 per square foot, according to area-wise market trackers. Family-favoured corridors such as Bopal, Shela, and South Bopal continue to sit in the mid-segment band, making them worth watching as the CREDAI-mandated hike filters through listings city-wide.
For a buyer standing at this particular crossroads, the calculus is simple but time-bound. Anyone with a shortlisted home, an approved loan, and genuine intent to buy has a narrow window before July 1 to lock in current rates and sidestep the 5–10% increase entirely. Those eyeing a new launch face the fuller 10% impact, while resale or near-completion homes carry a comparatively gentler 5% adjustment. Equally, anyone with possession dates penciled in for the coming year would do well to confirm timelines directly with their builder, given the deadline-extension requests now before the regulator.
What began as a builders' meeting has, in effect, reset the city's pricing floor for the second half of 2026. Whether the increase proves a one-time correction or the first of several remains to be seen, but for now, Ahmedabad's homebuyers are being asked to make peace with a costlier construction economy — one shaped as much by Middle Eastern supply chains as by local demand.
