A recent study has revealed that around 45% of commercial office spaces in Ahmedabad have been left vacant. The city’s vacancy levels are at the highest when it comes to the same among the big cities of India. Although the real estate market is recovering after Covid-19, spaces are vacant and bare.
According to a report by Knight Frank India, in 2019, vacant offices were at 36% but in the second half of 2020, it rose to 45% and is still at the same level. Despite, the sale of commercial offices rising, the vacancy has not reduced. From January to July period this year, the commercial real estate industry saw transactions of 1.3 million square feet, which is more than a 200% rise as compared to the same period last year.
“The vacancies have not come down because of the influx of new office spaces. But in the coming months, the quantum of office space being built in Ahmedabad is expected to be limited as the residential segment is becoming more attractive for real estate developers,” said Balbir Singh Khalsa, executive director of Knight Frank India.
The rents in areas like Ellisbridge, Ashram Road, and Paldi have fallen slightly down in the past year, while rentals of properties on Bodakdev, Satellite, Thaltej, Keshav Baugh, Prahlad Nagar and SG Highway stayed stagnant.