The commercial real estate market in Ahmedabad has rebounded after a two-year hiatus caused by the pandemic, propelled by shrinking inventory and increased demand.
At least 50 new commercial projects are expected to open in Ahmedabad over the next four months, according to GIHED-CREDAI estimates. With investments of Rs 5,000 crore, this is expected to add at least 80 lakh square feet of commercial space to the city.
Tejas Joshi, president, CREDAI-GIHED – Ahmedabad, said, “Soon after the lockdown of 2020, overall demand for the commercial real estate segment took a big hit as an increasing number of people worked from home. Many restaurants and other service industry players shut down retail premises after being hit by the pandemic-induced slowdown. This compelled a lot of developers to convert newly opened commercial projects into residential ones”.
“However, of late, as the market has staged a bounce back faster after the third wave. With demand for new, spacious office spaces going up, the overall demand for commercial spaces went up, encouraging developers to launch new projects”, He added.
In fact, a 41-storey 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.
“Commercial real estate saw very less demand for leasing, so office demand declined. However, since the beginning of 2022, office leasing business has picked up since with encouraging transactions. Besides those in the offing, several new commercial projects are at planning stage to meet demand,” said Viral Shah, secretary of CREDAI-GIHED Ahmedabad.