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In the once thriving skyline of Gujarat’s cities, something has gone eerily quiet. Towers stand tall, glass gleaming under the sun but inside, thousands of homes lie dark and deserted. These aren’t abandoned buildings; they’re newly constructed dreams, waiting in vain for someone to call them home.
This is not just a slowdown. This is a full blown crisis .
From Boom to Bust: How Gujarat’s Real Estate Lost Momentum
Just seven years ago, Gujarat's real estate sector was roaring. The year 2017–18 saw 1,981 projects completed , and over 2.29 lakh housing units eagerly picked up by homebuyers.
Fast forward to FY2024–25 , and the picture couldn’t be more different. This year, only 36 projects reached completion. Yes from nearly 2,000 to just 36 . That’s a 98% drop , the lowest project completion rate since 2017 .
The decline wasn’t sudden, but a slow, painful descent:
2018–19: 82% completion
2019–20: 78%
2020–21: 74%
2021–22: 56%
2022–23: 27%
2023–24: 10%
2024–25: Just 2%
Each year, hope slipped further through the cracks of unfinished concrete.
Inventory Crisis: Homes Without Homeowners
The numbers are staggering. Of the 1.99 lakh housing units registered in FY2024–25, only 22,000 units found buyers that’s a shocking 11% absorption rate . The remaining 89% around 1.77 lakh homes remain unsold.
Compare that to FY2017–18, when 70% of units were sold. Back then, over 2.29 lakh units were launched and only 94,000 remained unsold .
Today, the script is flipped. Builders are creating homes, but buyers have vanished.
Shrinking Budgets, Shrinking Projects
Even developers are pulling back.
From 2017–18 to 2024–25:
- Total investment shrunk from ₹78,944 crore to ₹25,963 crore
- New project registrations dropped from 1,981 to just 166
- Construction costs fell from ₹62,828 crore to ₹58,663 crore
- Land costs dipped from ₹21,135 crore to ₹20,281 crore
- Total built up area reduced from 20% to 12%
It’s as if the entire industry is holding its breath, building less, spending less, and waiting for a sign of recovery.
Who’s to Blame? Labour Shortage and Buyer Hesitation
So what went wrong?
According to Nilay Patel , Secretary of CREDAI Gujarat , two major culprits have emerged:
1. Lack of labourers , especially post COVID, has delayed projects across the state.
2. Reluctance among buyers to invest in under construction or ready to move in properties.
“We are also facing the same issue in our residential projects as the non availability of labourers has delayed our timelines,” he shared with Ahmedabad Mirror .
“There’s a clear drop in demand for ready to move in homes. Buyers are holding back.”
Even the most well funded projects are stuck not due to lack of cement or steel, but because there aren’t enough workers to lay bricks or people willing to move in.
The Ghost Towers of Gujarat
Drive through the new neighborhoods of Ahmedabad, Surat, or Rajkot, and you'll see towers rising into the sky, balconies with no flowerpots, windows with no curtains just silence. These are Gujarat’s ghost towers , a haunting reminder of what the market used to be.
What’s Next?
The real estate market of Gujarat needs more than just recovery it needs reinvention . Unless trust is rebuilt and demand re ignited, the state risks becoming home to India’s largest collection of unsold homes.
For now, the numbers speak louder than the marketing hoardings:
2% project completion
89% inventory unsold
₹53,000 crore decline in investments over 7 years
Final Word: The Foundations Must Be Reset
Behind every stalled project is a developer struggling to survive. Behind every unsold home is a family that never moved in. Gujarat’s real estate is not just about buildings it’s about livelihoods, aspirations, and stability.
It’s time for policymakers, developers, and financiers to come together before more dreams get trapped behind locked doors and dusty showrooms.
