As against banking, financial services and insurance (BFSI) followed by pharma, auto and other sectors that led the growth in commercial office space in Gujarat, the next phase of growth is set to come from information technology (IT), says Jones Lang LaSalle India (JLL), a real estate consulting firm.
"While core area of product development in information technology (IT) will remain in cities like Bangalore and Hyderabad, lot of back-end IT work will move to Ahmedabad. IT firms have now been seriously considering Ahmedabad and Vadodara for offices. Next phase of office space growth in Gujarat will come from IT," said Anuj Puri, chairman and country head, JLL India. Citing examples of upcoming Gujarat International finance Tec-city (GIFT) and new commercial business districts (CBDs) like Prahladnagar and SG Highway, Puri said office space investments have shown amazing growth, with capital values for commercial properties rising by as much as 20-30 per cent in these areas, apart from Ashram Road and some eastern parts of Ahmedabad.
According to Puri, unlike Bangalore and Hyderabad, cities in Gujarat will see more of Indian business process outsourcing work flourishing. "The talent here is more suited for domestic BPO work which is going to lead demand and absorption of office space in Gujarat," Puri added.
Approximately 3.5 million sq ft of commercial space has come up in the city over the last four years. Another 1.1 million sq ft is currently under construction and another 2.5 million sq ft will come up in next 2-3 years.
Currently, Jones Lang LaSalle India has captured about 70 per cent of Ahmedabad's organised retail real estate leasing business.