Ahmedabad is going through an exciting change and becoming a busy center for businesses. With its rich history and modern facilities, the city is attracting companies from many different fields. This growth is increasing the demand for commercial properties in Ahmedabad, changing the city’s appearance in important ways.

As more startups and established businesses come to Ahmedabad, investors are finding many great opportunities in this growing market. The city’s potential for growth is clear, and many people want to get involved. In this blog, we will look at what is driving the demand for commercial real estate in Ahmedabad and the exciting investment opportunities available.

Growth of Ahmedabad’s Commercial Property Sector in 2024-25

An overview of new developments, investment opportunities, and changes in the market for commercial real estate in Ahmedabad.

1. Growth in Developments:

Ahmedabad is experiencing a significant 20-25% rise in commercial property developments, highlighting a strong recovery from the slowdown caused by the COVID-19 pandemic. This growth highlights the city’s resilience and its potential for future investments.

2. New Projects Launched:

In 2024-25, the launch of 22 commercial projects and 70 mixed-use developments, as reported by GujRERA, signifies significant growth in Ahmedabad’s commercial real estate sector. This influx of projects illustrates the city’s vibrant development momentum and investment opportunities.

3. Market Rebound:

Last year, Ahmedabad recorded 67 commercial and 236 mixed-use projects, indicating a strong rebound in market activity. This revitalization shows the city’s capacity to recover and adapt, creating a fertile ground for new investments and business ventures.

4. Office Space Transactions:

In 2024, transactions for 1.7 million square feet of office space marked an astounding 219% increase from the same period last year. This surge underscores the rising demand for commercial real estate, driven by a recovering economy and business optimism.

5. Sector Contributions:

The growth in Ahmedabad’s commercial property market is significantly powered by sectors such as consulting, healthcare, and information technology. As the demand for other sectors is increasing, there is also a surge in demand for office spaces from both local and out-of-state businesses reflecting the city’s expanding economic landscape.

Factors Driving Ahmedabad’s Demand for Commercial Properties

Discover the key elements driving the increasing interest in Ahmedabad’s commercial real estate.

• Strategic Location and Connectivity: Ahmedabad’s prime geographic position serves as a gateway to international markets, boosting its commercial appeal. The city is well-connected through Sardar Vallabhbhai Patel International Airport, major highways, and a strong rail network, allowing businesses to access both domestic and global markets efficiently. This connectivity makes Ahmedabad an ideal location for commercial investment.
• Business-Friendly Policies and Initiatives: The Gujarat government fosters a business-friendly environment with initiatives such as the Gujarat Industrial Policy. These policies offer incentives for capital investments and support for startups, making it easier for businesses to thrive and increasing the demand for commercial properties.
• Booming Real Estate Sector: Ahmedabad’s commercial real estate market is rapidly expanding, driven by economic growth and rising demand for office spaces, retail outlets, and industrial facilities. Investors can tap into a thriving market with diverse opportunities, ranging from Grade-A office spaces to co-working environments.
• Tax Benefits: Investors in commercial properties can enjoy several tax benefits. This includes deductions for property depreciation and operational expenses. These tax advantages can significantly improve overall returns, making commercial real estate a more appealing investment option. By reducing taxable income, investors can keep more profits, ultimately enhancing their financial gains over time.
• Growing Urbanisation: With an urbanisation rate of about 3.5% per year, Ahmedabad is experiencing significant population growth, leading to increased demand for commercial spaces. As more businesses and residents flock to the city, the need for offices, retail spaces, and service-oriented establishments will continue to rise, providing excellent investment prospects.
• Supportive Government Policies: Government initiatives aimed at improving infrastructure, such as the Ahmedabad Metro project and Smart City initiatives, enhance the attractiveness of investing in commercial properties. These developments not only boost connectivity but also increase the city’s overall appeal for businesses.
• Capital Appreciation Potential: Ongoing urban development and economic growth in Ahmedabad are expected to lead to an appreciation in the value of commercial properties over time. This potential for capital gains makes it a smart investment choice for those looking to build wealth.
• Diverse Investment Opportunities: Ahmedabad’s varied industrial landscape including textiles, chemicals, IT, and e-commerce, offers many investment options across different sectors. This diversity not only helps minimise risks but also provides investors with numerous pathways for growth.

Wrapping Up!

Ahmedabad’s commercial property market is growing quickly, thanks to its strategic location, supportive government policies, and economic development. As the city evolves into a vibrant business hub, investors have an array of opportunities to explore, from office spaces to mixed-use developments. The ongoing urban growth and infrastructure improvements make Ahmedabad an attractive place for real estate investment.

If you’re planning to buy or invest in commercial properties in Ahmedabad, look no further than Shafalya Infra. As a top real estate developer in Ahmedabad, we are committed to delivering quality and innovation. We specialise in residential and commercial projects that enhance the quality of urban life. We have completed several successful commercial developments, and we are currently excited to introduce our new project, ‘Unicus-Shyamal,’ which aims to redefine modern commercial spaces. If you need assistance or have any questions, please contact us, we’re here to help and prioritise your satisfaction.