AHMEDABAD: The commercial property segment is reviving in the city and its suburbs. Real estate sources say the number of projects launched in this segment is set to grow by 20-25% this year.
Twenty-two commercial projects have been launched in the city this financial year. Real estate experts said demand for office space has increased and inventory levels are low owing to relatively few launches in the past three years, due to Covid. Demand for larger offices has also grown over the years.
In FY 2024-25 so far, 22 commercial and 70 mixed-use projects have been launched in the city, according to data from GujRERA. There were 67 commercial and 236 mixed-use projects launched in 2023-24. Before Covid, there were 108 commercial and 213 mixed-use launches in 2019-20. Traditionally, most projects are launched in the Aug to Jan months.
National president (elect) of Credai Shekhar Patel said, “There is a revival in commercial space demand across the country. Ahmedabad is also seeing a significant increase in demand and inventory levels are low because few projects were launched during and after Covid. SG Road and areas near it are seeing commercial launches. These projects also offer bigger offices, demand for which is increasing.”
A KnightFrank India report recently said that 1.7 million square feet of office space was transacted in Ahmedabad in the first six months of 2024.
“Demand momentum in the office market has been sustained, with Jan to June 2024 taking up the baton from the preceding half year period and reaching a new high of 1.7 million square feet transacted. This is 219% higher than in the same period last year,” the report said. The city also witnessed 1.7 million square feet of office space completed, which is 578% higher year-on-year.
India-facing businesses remained key market drivers, accounting for 77% of the transacted volume. Occupier demand in this category was well distributed across sectors. Other service sectors such as developers, engineers, consultants and healthcare made up 46% of the India-facing businesses while information technology companies accounted for 38%. Flexible office spaces ranked second, with 21% of the transacted space.”
Balbirsingh Khalsa, Ahmedabad branch director of KnightFrank India, said, “The record transaction volumes seen in the first six months of 2024 and consistent growth in rent since the first half of 2022 reinforce the growing profile of the Ahmedabad office market. Affordable real estate and extensive connectivity infrastructure continue to position the city as an appealing choice for offices.”
A leading developer said, “We believe commercial project launches will cross 2021-22 levels this year due to high demand. However, the retail segment is still a bit sluggish. This segment will also soon see a revival in keeping with the real estate cycle.”
