Office Space in Ahmedabad Gets a Rent Boost

News Source: constructionweekonline.in

Ahmedabad Office Market Records 25.5% Rent Growth

The Confederation of Real Estate Developers’ Associations of India (CREDAI), in partnership with real estate data intelligence leader CRE Matrix, has released the Ahmedabad Office Market Report for H1 CY2025, showcasing the city’s rapid emergence as a business and financial hub. The report indicates that Ahmedabad’s office market has firmly entered a landlord-favourable phase, with market rents in Grade A/A+ office spaces commanding a 25.5% premium over passing rents. This rent delta signals stronger pricing power, healthy leasing momentum, and growing occupier confidence in the city’s commercial real estate landscape.

The report highlights disciplined supply-demand dynamics, with both demand and new supply at 0.5 million sq-ft during H1 2025. Ahmedabad’s total Grade A office stock stands at 30.5 million sq-ft, with a healthy vacancy rate of 19.6%. Developers remain optimistic about the city’s prospects, with nearly 9.7 million sq-ft of new Grade A/A+ office space expected by 2030. This sustained growth underlines Ahmedabad’s growing appeal to Indian and multinational companies seeking strategic alternatives to metro cities.

Office Stock and Leasing Trends

The BFSI sector continues to drive demand, accounting for 56% of leasing transactions, followed by IT/ITES at 30% and industrials at 8%. Ahmedabad’s proximity to GIFT City has been crucial in attracting financial services and technology firms. Notable transactions include HSBC leasing 0.18 million sq ft at Westpark in the Central Business District, and Cognizant and Hexaware securing significant spaces in GIFT City’s Pragya II project. Although the Secondary Business District accounts for 62% of Ahmedabad's office space, GIFT City is quickly becoming a key growth driver. In just six months, it recorded 0.3 million sq ft of leasing and has five major projects under construction.

Shekhar Patel, President of CREDAI, said, Ahmedabad is at a turning point. A 25.5% rent premium, strong leasing activity, and the growth of GIFT City show how the city is shaping its future. As Prime Minister Modi aims to make India a global economic leader, Ahmedabad is on track to become a shining example of that vision. At CREDAI, we are committed to keeping the city’s built environment sustainable, future-ready, and aligned with the aspirations of a new India.

The report also highlights a strong pipeline of new projects, with 35.3% of the upcoming supply by 2027 located in GIFT City, showing confidence in Ahmedabad’s growth as a financial and tech hub. Developers have played a key role in this momentum, providing the highest share of new supply in 2024. Projects like Shilp Centrica in GIFT City, Trogon Twin Towers in Gandhinagar, and The Goodwill Tower IT SEZ are set to reshape the city’s commercial skyline in the coming years.

Perfect Demand and Rising Growth

Abhishek Kiran Gupta, CEO of CRE Matrix, said that Ahmedabad’s housing market has surpassed Mumbai in terms of units sold. Now, the city is focusing on attracting businesses. In just six months, it leased the same amount of Grade A/A+ office space as it added, showing a perfect balance between demand and supply. Banks and financial companies took 56% of all these leases. Ahmedabad has now become a strong hub for the BFSI sector, and this is just the beginning. GIFT City alone will contribute over 35% of all new office supply by 2027. Rents are also rising, with market rents now 25.5% higher than current rents, indicating that Ahmedabad has turned into a landlord’s market. The growth story is no longer just about Delhi, Bengaluru, Hyderabad, or Mumbai. Ahmedabad has now earned its place in corporate discussions and is here to stay. "Amdavad” best ma best che—and we are tracking every data point to capture this growth.

Ahmedabad is booming due to its good location, improved infrastructure, affordable expenses, and modern city design. As the city adds more types of businesses and improves its commercial spaces, it is being seen as an important center for India’s economy and innovation.