Outlook 2023 India

AHMEDABAD DEMAND & VACANCY

NET ABSORPTION (MSF) AND VACANCY RATE (%)

FORECAST

40.0%

1.4

 Office absorption has improved significantly in 2022 backed by rising demand from IT-BPM and Flex space operators.  Net absorption is forecast to reach 1.1 msf by the end of 2022 and the momentum is expected to continue for the next few years as the city attracts IT- occupiers, with benefits from the recently announced state IT Policy.  Vacancy is expected to drop by ~1% in 2023, and the downtrend is likely to continue resulting in ~25% vacancy levels by the end of 2026.

35.0%

1.2

30.0%

1.0

25.0%

0.8

20.0%

0.6

15.0%

0.4

10.0%

0.2

5.0%

0.0%

0.0

2020

2021

2022F

2023F

2024F

2025F

2026F

Net Absorption

Vacancy Rate

Source: Cushman & Wakefield