Ahmedabad Emerges as India’s Rising Business Hub With 25.5% Rent Upside: CREDAI-CRE Matrix Report

New Delhi, July 18, 2025: The Confederation of Real Estate Developers’ Associations of India (CREDAI), in collaboration with real estate data intelligence leader CRE Matrix, has unveiled its Ahmedabad Office Market Report for H1 CY2025, mapping the city’s fast-evolving position as a rising business and financial hub.

The report reveals that Ahmedabad’s office market has decisively entered a landlord-favourable phase with a 25.5 per cent premium of market rent over passing rent in Grade A/A+ office spaces. This rent delta is a clear indicator of improved pricing power, buoyant leasing momentum and growing occupier confidence in the city’s commercial real estate landscape.

The report captures the market’s disciplined supply-demand dynamics with both demand and new supply recorded at 0.5 mn sq ft (MSF) in H1 2025. Ahmedabad’s total Grade A office stock stands at 30.5 MSF with a healthy vacancy rate of 19.6 per cent.

Developers remain bullish on the city’s prospects with projections indicating the addition of nearly 9.7 MSF of new Grade A/A+ office space by 2030. This sustained growth reflects the city’s evolving appeal to both Indian and multinational companies seeking strategic alternatives to the metro cities.

The BFSI sector continues to anchor leasing demand, contributing 56 per cent of transactions, followed by IT/ITES at 30 per cent and industrials at 8 per cent. Ahmedabad’s proximity to GIFT City is playing a pivotal role in attracting financial services and technology firms to the region.

Landmark transactions during the period include HSBC leasing 0.18 MSF at Westpark in the Central Business District, and Cognizant and Hexaware securing significant space within GIFT City’s Pragya II project.

The Secondary Business District remains the most significant market with 62 per cent of the city’s office stock. Yet it is GIFT City that is rapidly emerging as the growth engine having recorded 0.3 MSF of gross leasing in just six months and hosting five major projects under active development.

 “Ahmedabad is at a defining crossroads and this report reflects a city that is no longer just growing, but preparing to lead. A 25.5 per cent rent premium, robust leasing momentum and the rise of GIFT City are not just numbers; they are markers of a city shaping its destiny,” said Shekhar Patel, President, CREDAI.

“This is more than real estate; it is about building a thriving ecosystem where business, finance and technology come together to create enduring value. As Prime Minister Modi envisions India as a global economic powerhouse, Ahmedabad is well on its way to becoming a shining example of that mission in action. At CREDAI, we are committed to ensuring that the city’s built environment keeps pace with sustainable, future-ready and aligned with the aspirations of New India.”

The report also draws attention to the strong developer pipeline. Around 35.3 per cent of the upcoming supply in Ahmedabad until 2027 is concentrated in GIFT City, reflecting developer conviction in the city’s trajectory as a financial and tech epicentre.

Developers have been instrumental in driving this momentum, contributing the highest share of new supply in CY24. Upcoming developments, like Shilp Centrica in GIFT City, Trogon Twin Towers in Gandhinagar and The Goodwill Tower IT SEZ are set to redefine the city’s commercial skyline over the next few years.

Abhishek Kiran Gupta, CEO, CRE Matrix, said, “First, Ahmedabad’s housing market beat Mumbai in terms of housing units sold. Now, it’s aiming for India’s corporate growth too. In just six months, the city leased as much Grade A/A+ office space as it added—a perfect 1:1 demand-to-supply ratio. That’s balance. That’s momentum.”

Banks and financial firms led the charge, taking up 56 per cent of all office leases. “Yes, Ahmedabad is now a BFSI stronghold, and it’s just getting started. Gift City alone accounts for over 35 per cent of all upcoming supply by 2027. Think about that. Rents are rising too. Market rent is now 25.5 per cent higher than passing rent—a clear signal.”

He added, “Ahmedabad is turning into a landlord’s market. The story is no longer just about Delhi, Bengaluru, Hyderabad or Mumbai. Ahmedabad has entered the boardroom, and it’s here to stay.”

Ahmedabad’s growth story is being propelled not just by strategic location advantages and infrastructure upgrades but also by its cost competitiveness and progressive urban planning. As the city diversifies its tenant base and strengthens its commercial infrastructure, it is increasingly being recognised as a key node in India’s broader economic and innovation landscape.