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Average office space demands doubles in Ahmedabad

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Vinay Umarji Mumbai/ Ahmedabad
Last Updated : Jan 20 2013 | 1:49 AM IST

When it comes to office space, the appetite seem to have just gotten bigger for enterprises in Ahmedabad. According to city-based developers, the average office space enquiries have more than doubled in the last 4-5 months.

Sectors like BFSI, telecom and IT have been driving the demand for office space in Ahmedabad, which has shot up by as high as 35-40 per cent since some time. According to Rajesh Vaswani, executive director, Venus Infrastructure & Developers Ltd., it is the second rung of corporates that have been pushing the demand for office space in the city.

"It is not only the regular leading sectors like BFSI and IT but also new and emerging sectors like telecom and auto ancillaries are increasingly seeking bigger office spaces in Ahmedabad. Till last year, the average office space enquiry would be around 1,000 sq ft which now has moved up to 2,500-3,000 sq ft. In our case, enquiries have also increased by about 40 per cent," said Vaswani, who has constructed about two million sq ft of office space while another 200,000 sq ft of space is under construction.

Apparently, the rise in demand has also been pushing up the prices. "There has been an increase of around 15 per cent in prices while an equal amount of enquiries have risen in the past few months. While the demand has been pouring in by the regular sectors, it is also enterprises who are setting up their manufacturing bases in other parts of Gujarat that are looking for office spaces in Ahmedabad," said Nirav Kothary, local director, Jones Lang LaSalle India (JLL).

Average price for office spaces in Ahmedabad have now been ranging between Rs 5,000 and Rs 6,000 per sq ft, cited Vijay Shah of M/s Vijay Shah, an Ahmedabad-based real estate development firm. This being despite the fact that Ahmedabad witnessed a slowdown in construction activity in 2010, as a result of which the city recorded a drop in absorption of office space by six per cent as compared to 2009.

According to a recent study by real estate consulting firm, Cushman & Wakefield, while the office space supply rose from 280,000 sq.ft. in 2009 to 510,000 sq.ft. in 2010, the absorption dropped from 330,000 sq.ft. in 2009 to approximately 308,000 sq.ft. for 2010. Ahmedabad saw telecom, banking, financial services and insurance (BFSI) and small corporates continue to be the major demand drivers for office space in the city, the study had stated.

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First Published: Feb 28 2011 | 12:17 AM IST

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