With companies from various sectors looking to expand, young professionals migrating to Gujarat for better career opportunities, and a rapid increase in startups, the commercial real estate market has been gaining momentum since last year.
According to the Gujarat Real Estate Regulatory Authority (GRERA), new commercial project registrations in Gujarat increased by 24% to 213 in 2021-22, up from 171 in 2020-21.
In Ahmedabad alone, 76 new commercial projects were registered, up 17% from FY 2021 and the highest increase in the state.
After cases of Covid-19 began to decline, developers and real estate experts attribute the increase in demand to increased business confidence and concrete plans for growth and expansion.
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 expand with new town planning schemes in place, the need for residential and commercial 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.