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Introduction:
Just a few years ago, the commercial real estate sector in Gujarat was facing one of its toughest phases. The COVID 19 pandemic had forced offices to go remote, brought retail footfalls to a halt, and put a freeze on major investments. But fast forward to 2024–25 and the story has changed dramatically.
Gujarat’s commercial real estate market is back on its feet stronger, smarter, and greener. Here's a data driven look into this dramatic recovery and what it signals for developers, investors, and end users.
Snapshot: Record New Launches in 2024–25
Gujarat registered 245 new commercial projects the highest since 2019–20, when 269 were launched.
A total of 31,520 commercial units were registered this year from office spaces and retail shops to showrooms and mixed use properties.
This signals a renewed confidence in the commercial market from both developers and buyers alike.
The COVID Impact: A Sudden Crash
In 2020–21, when the pandemic was at its peak:
- Commercial project registrations dropped by 58% .
- Developers went into wait and watch mode.
- Office demand declined sharply due to the rise of work from home, while retail businesses faced shutdowns or major slowdowns.
The Rebound: Year by Year Growth
From 2021–22 onwards, Gujarat’s commercial sector began climbing back.
2021–22: Project count rose by 43.5% — early signs of revival.
2023–24: A major jump — 68.2% increase in investment.
2024–25: Continued momentum — 15.6% growth in project count, 20.7% growth in total investment value.
This is not a short term blip — it’s a structured recovery, backed by sustained demand, improved economic outlook, and better quality spaces.
Spotlight: Ahmedabad Leading the Charge
Among all cities in Gujarat, Ahmedabad stood out:
- 72 new commercial projects launched in 2024–25.
- These accounted for an investment of ₹3,394 crore — a clear signal of Ahmedabad’s central role in the state’s real estate engine.
- The city continues to be a hub for offices, retail zones, hospitality, and co working spaces .
What’s Changing?
| Year | Projects Registered | Total Project Cost (₹ crore) | Total Units |
| 2017-18 | 411 | 19,353 | 76,463 |
| 2018-19 | 427 | 13,838 | 69,770 |
| 2019-20 | 269 | 12,196 | 42,429 |
| 2020-21 | 168 | 4,399 | 19,575 |
| 2021-22 | 241 | 5,864 | 26,946 |
| 2022-23 | 246 | 5,985 | 23,905 |
| 2023-24 | 212 | 10,067 | 25,580 |
| 2024-25 | 245 | 12,152 | 31,520 |
The post pandemic spike is driven by:
- Better quality construction
- Premium locations
- Green certified buildings
- Higher demand from service, retail, and startup sectors
Units Per Project: From Bigger to Smarter
2018–19: Average of 137 units per project
2021–22: Fell to 107 units (developers were cautious)
2023–24: Rebounded to 131 units
2024–25: Stabilized at 118 units
This shift reflects the industry’s focus on quality, not just quantity with more usable, flexible, and compact designs that suit new age business needs.
The Rise of Green Commercial Buildings
One of the biggest shifts in Gujarat’s commercial real estate: the green building revolution.
Nearly 40–50% of all new commercial projects are now green certified .
These buildings offer:
- 30% savings on energy bills
- Improved indoor air quality
- Higher long term value
- More leasing interest from global tenants
Why the sudden green push?
The government is offering 7–12% extra FSI for certified green buildings.
Buyers and companies are choosing eco conscious spaces for long term cost benefits and brand image.
Certification by IGBC, GRIHA, or LEED has become a mark of quality.
What This Means for the Market
✅ For Developers:
Commercial projects are viable again, especially in strategic urban zones.
Premium office and retail formats have more takers than ever.
✅ For Investors:
Commercial real estate is offering healthy rental yields, especially in office and retail segments.
Green buildings and mixed use hubs are future proof bets.
✅ For End Users (Tenants/Buyers):
Better infrastructure, smarter layouts, and more energy efficient buildings are now standard.
Leasing options are abundant, especially in Ahmedabad, Vadodara, Rajkot, and Surat.
Conclusion: Gujarat’s Commercial Real Estate is Back and It’s Evolving
From a pandemic induced slump to record breaking new launches, Gujarat’s commercial real estate journey is a masterclass in resilience and reinvention.
Ahmedabad, in particular, is leading the way not just in volume but also in vision. With smarter projects, rising green adoption, and a strong return of business confidence, the state is redefining what modern commercial spaces should look like.
As we move further into 2025, Gujarat's commercial skyline isn't just growing it's getting greener, sharper, and more future ready.
