AHMEDABAD: Gujarat’s commercial real estate sector is experiencing a robust revival after years of fluctuation. In 2024-25, the state celebrated the launch of 245 new commercial projects — the highest number since 2019-20’s 269 projects. Additionally, 31,520 commercial units were registered, marking a peak in post-Covid registrations, according to the latest GujRERA report. The sector saw a dramatic drop of 58% in registrations during 2020-21, the peak Covid year, primarily due to the work-from-home culture and lockdowns affecting demand.
Tejas Joshi, vice-president of Credai Gujarat, stated, “Office demand plummeted sharply, with businesses in sectors like entertainment, food services, gyms, and tuition greatly impacted. Naturally, new launches decreased during and post-Covid. However, demand is resurging, leading to increased launches in the past year.”
He added that cities like Ahmedabad are experiencing positive growth in rental values.
Another significant trend contributing to this recovery is the rise of green construction. “In major cities, around 40-50% of commercial projects are now green buildings. State government incentives, including a 7-12% relief on chargeable FSI, have encouraged this shift. Buyers are also leaning toward green buildings due to the savings of 30% or more on electricity costs,” noted Taral Shah, co-chairman of the Indian Green Building Council (Ahmedabad chapter).
According to GujRERA, commercial launches saw modest growth in 2018-19 (3.9%) but declined sharply in 2019-20 and 2020-21 (both -37%), with a steep -63.9% drop in investments for 2020-21. However, the sector rebounded in 2021-22 with a 43.5% increase in projects and a 53.4% growth in units, continuing into 2023-24 with a 68.2% rise in investments. The upward trend persisted into 2024-25, reflecting a 15.6% increase in projects and a 20.7% rise in investments.
A notable highlight is Ahmedabad, which recorded 72 commercial projects in 2024-25, attracting investments worth ₹3,394 crore. The average cost per unit decreased from ₹34 lakh in 2017-18 to ₹25 lakh in 2022-23 but surged to ₹44 lakh in 2023-24, later stabilizing at ₹40 lakh for 2024-25, indicating a shift towards higher-value commercial spaces.
The average number of units per project dropped from 137 in 2018-19 to 107 in 2021-22 but recovered to 131 in 2023-24, slightly declining to 118 in 2024-25 — suggesting an evolution in market dynamics. The figures of 118 units per project and ₹40 lakh per unit in 2024-25 indicate a maturing, demand-driven commercial sector adapting to contemporary business needs.
