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| Demand for office spaces to grow in Ahmedabad |
| Vinay Umarji / Mumbai/ Ahmedabad Sep 02, 2010, 00:30 IST |
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While residential properties are demanded and priced higher than commercial ones, real estate developers in Ahmedabad feel demand for the latter is likely to rise again. According to developers, factors like improved market sentiments and better economy is resulting in rise in demand for commercial properties.
However, in commercial properties, while the demand for shops is likely to remain stagnant, it is the office space that is likely to see more deals in the near future in Ahmedabad.
“Shopping and consumerism has yet not picked up in Ahmedabad. On the contrary, there is a growing demand for office space. Not only new offices are being demanded but the areas are also growing. Unlike in the past when most of the office space was concentrated in central business districts (CBDs) like Ashram Road and CG Road, nowadays office space buyers are preferring other areas like Prahladnagar, SG Highway, providing more scope for developers to build such properties,” says Vijay Shah of M/s Vijay Shah, a real estate development firm.
As per a recent report by Jones Lang LaSalle India (JLL), while the western central micro market that includes locations like CG Road, Ashram Road, Prahladnagar, Bodakdev, Vejalpur, Vasna, Satellite, Thaltej, Sola and Science City Road has witnessed average capital values at around Rs 3,000-5,500 per sq ft, western suburbs like Bopal, Ghuma, Shela, Shilaj, and Sarkhej-Sanand Road have witnessed it around Rs 2,500-3,500 per sq ft, indicating healthy deals in these micro markets.
“So far Ahmedabad saw more deals in residential while office space was limited. But now many properties are coming up on SG Highway. Enquiries with JLL for office space have also begun increasing. Recently, a multi-national IT firm which has a Pan-India presence was also looking for office space in Ahmedabad. The growing demand for commercial properties especially in office space can be attributed to both improved market sentiments as well improved quality of supply,” says Kripal Singh, manager - strategic consulting, JLL India.
Even the eastern part of the city has also begun witnessing a growth in demand for commercial properties. According to Babubhai Vora, president of Ahmedabad (East) Builders’ Association (ABA), the association's recent property show saw around 400-450 different residential and commercial schemes that were displayed receiving ample enquiries.
Meanwhile, Jaxay Shah, director of Savvy Infrastructure Limited feels the rise in prices of properties by 20-30 per cent as well as post-recession optimism is likely to attract more builders towards offices spaces.
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