The demand for residential properties grew during the pandemic as homes turned into mini-offices and High Net Worth individuals, frustratingly confined indoors, sought new spaces to replicate outdoor amenities.
However, as offices remained closed, the commercial real estate market remained cold. According to a report, commercial real estate has sunk by 80% over the past five years, with Gujarat witnessing an all-time low.
The report that claimed in 2017-18, 411 commercial projects were registered with the Gujarat Real Estate Regulatory Authority (GujRERA) with a combined carpet area of 54. 20 lakh sq. m.
Contrast these numbers with those achieved in 2021-22 when only 241 commercial projects with a carpet area of 12.64 lakh sq. m were registered. The numbers shrunk to 172 projects with a total of 8. 36 lakh sq. m of carpet area in 2022-23, the report added.
The total commercial property project worth Rs 19,399 crore in 2017-18 dropped by 79.2% to Rs 4,026 crore in 2022-23.
Citing GujRERA data, the media report reveals that Ahmedabad contributes almost 40% to Gujarat’s commercial real estate sector. But the numbers the city achieved in recent times are far from encouraging. Ahmedabad registered just 69 projects and 3.34 lakh sq. m carpet area last year as opposed to 164 commercial property projects with a total carpet area of 21.68 lakh sq. m in 2017-18.
However, the demand for grade-A commercial spaces has upped owing to a robust startup ecosystem and entries of new firms into Gujarat. Co-working spaces, the report highlighted, have led to value deals for occupiers.
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