Asia Pacific Office Outlook 2024

AHMEDABAD

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 2 msf of new supply is expected to enter the Ahmedabad market in 2024 across submarkets.  Further, 2.07 msf is expected in 2025, followed by an average supply of 1.15 msf anticipated during 2026-2027.

 Net absorption in 2023 is expected to reach 1.35 msf. Demand momentum is expected to continue in 2024 and 2025 with an average of 1.35 msf of net absorption each year.  Vacancy is expected to stay in the range of 30-31% from 2023 through 2025.  Strong supply addition in 2024 and 2025 is expected to cause a temporary increase in vacancy by 0.5– 1%.

 Rents are forecast to grow by around 3% between 2023 and 2025, backed by rising demand for quality office space in the city.  This rental movement will take rents to INR 536 /sft/yr at the end of 2023 to INR 553 /sft/yr by end 2025.

 The city is currently

attracting major IT-BPM occupiers supported by the state government’s IT policy, SEZ benefits and talent pool availability. Submarkets such as GIFT City and SBD have been attracting the majority of occupiers.