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Gujarat's real estate sector has seen a slowdown in new project registrations, with numbers dropping to the lowest level since the pandemic-affected period. Around 1,610 projects were registered in the last financial year, reflecting a decline after strong post-Covid supply growth. Developers have slowed new launches as many existing projects are still under construction and inventory remains in certain segments. Key cities such as Ahmedabad, Surat and Vadodara continue to dominate activity, while policy changes and infrastructure development are expected to support gradual recovery in the coming period.
Gujarat's real estate market recorded a decline in new project registrations during the last financial year, with activity falling to its lowest level since the pandemic-affected period. Data from the state's real estate regulator showed that about 1,610 projects were registered, compared to consistently higher numbers seen over the past four years following the recovery phase after Covid-19. Advertisement
The fall in registrations comes after a strong phase of supply expansion between FY22 and FY25, when developers launched projects across residential, commercial and plotted segments to capture rising demand. With a large number of these developments still under construction, builders have slowed fresh launches and shifted focus towards execution and delivery of ongoing projects.
Developers indicated that the typical project completion cycle of nearly three years has also influenced this trend, as projects launched in the earlier growth phase are still being completed. This has limited the need for immediate new supply, especially in segments where unsold inventory remains.
Ahmedabad continued to account for the highest number of project registrations in the state, followed by Surat and Vadodara. These cities remain the primary real estate markets in Gujarat due to steady end-user demand, industrial growth and urban expansion. Residential projects formed the majority of registrations, while mixed-use, commercial and plotted developments made up the rest of the share.
The slowdown is also linked to broader housing market trends. Over the past year, property prices have increased in several micro-markets, and there has been some moderation in demand, particularly in the mid-income segment. This has led to more cautious decision-making by developers when it comes to launching new projects.
At the policy level, the state government has introduced measures to simplify property transactions. The removal of the earlier waiting period for undisputed property deals and steps to streamline approvals are expected to reduce delays and improve transaction efficiency. These changes may support market activity going forward.
Industry participants view the current decline as part of a normal market cycle rather than a long-term slowdown. Gujarat's real estate sector had seen strong growth after the pandemic, supported by economic recovery, infrastructure investments and increased housing demand. The present phase reflects consolidation, where supply is being aligned with actual demand and project completion timelines.
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