Ahmedabad has emerged as the biggest commercial real estate market in India. According to the latest CB Richard Ellis (CBRE) report, this city has been a leader for the past five years in terms of office space stock and office space absorption trends.
“Ahmedabad’s investment grade office stock grew exponentially from less than 20 million square feet in the early 2000s to 127 million square feet in 2015-at a compound annual growth rate (CAGR) of 13 per cent over the last 15 years. This has placed the city well ahead of other leading Indian office hubs”, CBRE said in a statement.
A combination of factors are responsible for making Ahmedabad the most sought after corporate realty destination. Some of the most critical factors have been discussed below:
IT/ITES sector:
Known as the Silicon Valley of India, Ahmedabad has witnessed phenomenal growth in the IT/ITES sector since the early Y2K controversies. Home to more than 40% of the total IT companies in India, the city still continues to attract foreign investment because of supportive government policies, conducive to growth culture and exceptional talent pool. This trend has created a huge demand for commercial real estate spaces in the city for constructing retail spaces, commercial office spaces, IT city centres and IT parks.
Connectivity:
Another reason why this city is considered as a preferred base for corporates is its excellent connectivity. Ahmedabad is home to the third largest airport in India, it is a major railway hub, and has convenient access to major economic centres of India – Mumbai-Pune region, Hyderabad, Chennai and the West Coast. In addition, the city’s local transportation network is superior to that of most other cities in India.
Growth of E-commerce and Global Captive Centres (GCCs):
Off late, major demand for commercial real estate in Ahmedabad is coming from e-commerce players and on-demand car-sharing players. Also, this city plays host to the largest number of GCCs in India, contributing to increasing demand of commercial real estate.
Breeding Ground for Start-Ups:
The booming technology sector, availability of a huge talent pool and stable government has made Ahmedabad a fertile base for starting and running successful businesses. This flourishing start-up culture is also responsible for boosting the demand for commercial realty in Ahmedabad.
Talent Pool:
Ahmedabad is home to many internationally renowned management, medical and engineering colleges. The availability of highly qualified skill pool has been one of the major reasons why corporates prefer to establish their operations in this city.
Therefore, it is evident that Ahmedabad has all the potential to sustain its position as a leader in corporate realty market in India.