Ahmedabad : Ahmedabad’s real estate market maintained stability during the second half of 2025, driven by consistent end-user demand in the residential segment, while office leasing activity witnessed moderation due to a strong base effect, according to the latest India Real Estate: Office and Residential Market, July–December 2025 (H2 2025) report released by Knight Frank India. The report highlights that the city continues to benefit from relative affordability, calibrated urban expansion, and ongoing infrastructure development, which together are shaping residential buying trends and office occupier behaviour.
Office Market: Quality-Led Absorption Strengthens Fundamentals
Ahmedabad’s office market recorded leasing of 1.2 million sq ft in H2 2025, marking a 14 percent year-on-year decline, primarily due to the exceptionally high absorption witnessed in the corresponding period last year. For the full calendar year 2025, office transactions stood at 2.0 million sq ft, remaining above post-pandemic averages despite a 34 percent YoY correction from the 2024 peak.
New office supply additions declined 30 percent YoY in 2025 as developers continued to defer project completions while focusing on higher-grade developments. With absorption outpacing new supply, vacancy levels improved by 100 basis points YoY to 37.4 percent, indicating gradual tightening of market fundamentals.
India-facing companies dominated leasing demand in H2 2025, accounting for 83 percent of total transactions, followed by flex operators and third-party IT services. Notably, 82 percent of all office transactions were concluded in Grade A, compliant buildings, underlining a clear shift toward quality-led demand. Average office rents remained stable at ₹44 per sq ft per month.
CBD West continued to lead leasing activity, supported by established corridors such as SG Highway, Prahlad Nagar, Shivranjani, and Sindhu Bhavan Road. Peripheral Business Districts, including GIFT City and select northern locations, contributed 30 percent of total leasing, reflecting increasing preference for policy-supported, modern office ecosystems.
Commenting on the trends, Rumit Parikh, Branch Head – Ahmedabad and Senior Director, Knight Frank India, said that while leasing activity moderated in H2 2025, sustained preference for Grade A buildings and improving vacancy levels point toward strengthening office market fundamentals, with momentum expected to build gradually in the coming quarters.
Residential Market: Affordability and End-User Confidence Drive Growth
Ahmedabad’s residential market continued its growth trajectory during H2 2025, with housing sales rising 3 percent YoY to 9,382 units. For the full year 2025, residential sales increased 2 percent YoY to 18,752 units, reflecting steady buyer confidence despite a higher base.
New residential launches during H2 2025 stood at 11,307 units, marginally lower by 4 percent YoY, indicating a disciplined and measured supply response by developers.
The city remained among the most affordable residential markets across India’s top eight cities. Average residential prices increased by a modest 3 percent YoY to ₹3,120 per sq ft. While unsold inventory rose 10 percent YoY to 36,231 units, overall market health remained comfortable, with Quarters-to-Sell at 7.6, translating to less than two years of inventory.
Buyer preferences continued to evolve toward mid and premium housing. During H2 2025, the ₹50–100 lakh segment accounted for 46 percent of total residential sales, while homes priced above ₹1 crore increased their share to 25 percent, reflecting growing acceptance of premium, lifestyle-oriented housing, particularly along SG Highway and SP Ring Road.
On the supply side, homes priced between ₹50–100 lakh dominated new launches with a 50 percent share, while units priced above ₹1 crore accounted for 26 percent. Higher FSI norms and improved metro connectivity continue to support residential development across western and northern micro-markets such as SG Highway, Bopal, Chandkheda, and Motera.
Summarising the outlook, Rumit Parikh noted that Ahmedabad’s residential market continues to display resilience, supported by end-user demand, affordability advantages, and rising aspirations for better-specified, well-located homes.