Real-estate developers constructing office spaces in Ahmedabad seem to be on a roll. During the calendar year 2014, not only did the realtors manage to lease out more than 10 lakh square feet – a feat achieved after a five-year-gap – the city also left all major cities in the country behind, registering a phenomenal 163 percent growth rate in office space absorption.
Over 15 lakh square feet of office space was absorbed in Ahmedabad between January-December 2014 which was nearly 2.5 times the figure in 2013. It also exceeded 10 lakh square feet for the first time in five years, stated a report by Cushman & Wakefield (C&W) released Thursday.
However, the higher growth rate was due to a lower base, the report added. For instance, Ahmedabad saw only 5.76 lakh of space being absorbed in 2013. This grew to 15.12 lakh in 2014. In comparison, other cities like Bangalore (88 lakh sq ft), NCR (62 lakh sq ft), Hyderabad (44 lakh) leased out more office space during the year, but registered lower growth rates. Kolkata (-33%), Mumbai (-6%) and Pune (-4%) were the only three big cities that registered a negative trend during this period.
“The IT-ITeS sector contributed 50 percent to the leasing activity in 2014, followed by BFSI (31%) and manufacturing (11%),” stated the report about the leasing trend among corporates in Ahmedabad.