Gujarat: Commercial real estate market gains momentum

With companies across sectors looking to expand, young professionals migrating Gujarat for better career opportunities and a rapid increase in startups, the commercial real estate market is gaining momentum since last year.

According to data from the Gujarat Real Estate Regulatory Authority (GRERA), new commercial project registrations in Gujarat rose by 24% to 213 in 2021-22, against 171 in 2020-21.

Of these, 76 new commercial projects were registered in Ahmedabad alone — up 17% from FY 2021 — the highest increase in the state. Developers and real estate experts attribute the growth in demand to better confidence among businesses and concrete plans for growth and expansion after cases of Covid-19 began to decrease.

Balbir Singh Khalsa, executive director, Knight Frank India, said, "As industries and corporates are bullish on expansion plans, the need for commercial property has gone up. This includes office space as well as retail and showroom spaces. The only way retail growth is underlined is to expand the geographical footprint of the brand. Moreover, as metro cities expandwith new town p l anni ng schemes in place, the need for residential and commer- cial real estate in new areas goes hand in hand. "

According to GRERA, investments worth Rs 5,005 crore have taken place in new commercial real estate projects across Gujarat in 202122, up 13% from Rs 4,436 crore in 2020-21. Of total investments, the lion's share or Rs 2,244 crore, are in the Ahmedabad commercial real estate market alone.