Commercial real estate bounces back in Ahmedabad

After a two-year long pandemic-induced lull, the commercial real estate market in Ahmedabad has rebounded, propelled by shrinking inventory and increase in demand.

According to estimates by GIHED-CREDAI, at least 50 new commercial projects are set to be launched in Ahmedabad over the next four months.

This is expected to add at least 80 lakh square feet of commercial space in the city, with investments to the tune of Rs 5,000 crore.

In fact, a 41storey building slated to be Gujarat's tallest building will also be a commercial tower. Industry players suggest demand for both office and retail spaces has gone up.

Office spaces of sizes ranging from 500 to 1,500 square feet are in good demand, according to developers.

One of the reasons for an influx of commercial real estate in the city is also the shrinking inventory. "No commercial spaces were launched soon after Covid-19 pandemic. This led to a shrinkage in available inventory. Of late, the demand has bounced back well from banking sector, fintech firms, pharma and IT industry players as these sectors are witnessing increasing investments. At the same time, demand for large office segments to be converted into coworking spaces or managed working spaces is also seeing greater traction. Moreover, retail space demand has also picked up," said an Ahmedabad-based developer.