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Demand for office space picking up in Ahmedabad

Ahmedabad is seeing enhanced demand for office space with the entry of new ventures from pan India and expansion of local industries.  The commercial capital values have almost been doubled in last two years while the rentals have become thrice during the same period. Organised retail has also come up in the city in an extraordinary fashion giving unprecedented returns on the investments”, says Prakash Jain from Jain Associates. The appreciating capital and rental values in the city has attracted many developers and investors to make investment in the city, he added.

According to Bharat Shah, property consultant at Shah Properties, “The favourable investment policies by the state government have also fuelled more realty investments inviting local as well as foreign investors”.

The capital and rental values of Grade A office space witnessed an appreciation of 20-30 per cent during past quarter, whereas the Grade B office space noted a 10-15 per cent escalations during the same period. Localities such as Prahlad Nagar, S.G. Highway, Ashram Road and C.G Road are few of the areas seeing maximum demand and higher number of transactions. According to latest JLL Report, “Approximately 3.5 million square feet of commercial space has come up in Ahmedabad over the last four years. Another 1.1 million square feet is currently under construction and another 2.5 million square feet will come up in next 2-3 years.” This clearly shows huge demand-supply of commercial properties in the city.

The quality and services of the existing office spaces have risen remarkably in recent times too. “The city is seeing demand from both the domestic as well international players owing to availability of space, affordable values and favourable realty market. Service sectors such as banks, insurances, medical and other hospitality is also expanding in exponential terms propelling the commercial sector”, sums up Shah.

Apart from this, the city’s infrastructure is continuously upgrading being under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and resulting in opening-up of new corridors of growth. Areas around S.G Highway, Sansad and Vadodara-Mumbai highway are few of the emerging commercial corridors poised to become secondary business districts of Ahmedabad. With all this the city’s commercial realty sector is set to grow further and positive returns are anticipated.