Ahmedabad's commercial ascent: BFSI demand leading to shift towards 'landlord-favourable' market

Around 35.3 percent of the upcoming supply in Ahmedabad until 2027 is concentrated in GIFT City.

Ahmedabad is fast-emerging as a business hub shifting to a landlord-favourable market, with office rentals led by BFSI sector commanding a premium of 25.5 percent over Grade A/A+ spaces during the first half of the year, a joint report by Confederation of Real Estate Developers’ Associations of India (CREDAI) and CRE Matrix showed.

Banking Financial Services and Insurance (BFSI) sector - at 56 percent - is followed by IT/ITES sector with 30 percent share in total office leasing, and industrials at 8 percent. Ahmedabad’s total Grade-A office stock currently stands at 30.5 million square feet (msf), with a vacancy rate of 19.6 percent. Developers are bullish on the city’s prospects with projections indicating an addition of nearly 9.7 msf of new Grade A/A+ office space by 2030.

The report also showed that Ahmedabad’s office market has ‘decisively entered’ a landlord-favourable phase, with a 25.5 percent premium of market rent over passing rent in Grade A/A+ office spaces.

Shekhar Patel, President, CREDAI said that Ahmedabad is at crossroads and this report reflects a city that is no longer just growing but preparing to lead.

“A 25.5 percent rent premium, robust leasing momentum, and the rise of GIFT City are not just numbers; they are markers of a city shaping its destiny. 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,” he said.

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GIFT City emerging as growth engine

Gujarat International Finance Tec-City (GIFT City) is India's first operational smart city and International Financial Services Centre (IFSC). GIFT City is rapidly emerging as the growth engine as it has recorded 0.3 msf of gross leasing in H1 2025 and is hosting five major projects under active development.

The report showed that around 35.3 percent 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.

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 that first, 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. Banks and financial firms led the charge - taking up 56 percent of all office leases. Gift City alone accounts for over 35 percent of all upcoming supply by 2027. Rents are rising too as market rent is now 25.5 percent higher than passing rent showing that Ahmedabad is turning into a landlord’s market,” he said.