Ahmedabad is experiencing a robust resurgence in its commercial property sector, with a significant uptick in new project launches. The city is witnessing a 20-25% increase in commercial property developments this year, a marked recovery following a period of stagnation caused by the COVID-19 pandemic.
According to recent data from the Gujarat Real Estate Regulatory Authority (GujRERA), the fiscal year 2024-25 has seen the initiation of 22 commercial projects and 70 mixed-use developments. This is a notable rebound from the previous year, which recorded 67 commercial and 236 mixed-use projects. The activity levels of 2019-20, prior to the pandemic, saw a peak with 108 commercial projects, indicating that the current surge reflects a gradual but steady recovery.
Real estate analysts attribute the increase to a shift in business preferences towards larger office spaces, coupled with a decrease in available inventory. The national president (elect) of the Confederation of Real Estate Developers Associations of India (CREDAI) highlighted a surge in demand, particularly in prime locations such as SG Road. This heightened interest is driven by both local enterprises and out-of-state companies looking to capitalise on Ahmedabad’s favourable economic environment and robust infrastructure. A recent Knight Frank India report underscored this trend, revealing that 1.7 million square feet of office space were transacted in the first half of 2024, a staggering 219% increase from the same period the previous year. The report noted that the majority of these transactions were driven by India-facing businesses, with sectors such as consulting, healthcare, and information technology contributing significantly to the growth.
Despite the positive outlook for the commercial sector, the retail segment is lagging, mirroring broader shifts in consumer behaviour and shopping patterns. However, industry experts remain optimistic, predicting a gradual recovery in retail as the real estate market stabilises. The commercial property market in Ahmedabad is poised for continued growth, supported by low inventory levels, increased demand for office spaces, and an overall rebound from pandemic-induced disruptions. As developers gear up for more launches, there is cautious optimism that the retail sector will also begin to recover, restoring balance to the city’s real estate landscape.
