Gujarat warehousing leasing up by 10% in 2025, Ahmedabad leads demand: Report

“Supported by the government’s manufacturing push and enabling policy initiatives, Gujarat’s warehousing and industrial real estate market is poised for sustained growth,” Rumit Parikh, Senior Director and Branch Head (Ahmedabad), Knight Frank India, was quoted as saying in a release.

Among Ahmedabad’s logistics clusters, the Aslali–Kheda belt accounted for 43 per cent of transactions, while the Changodar–Bagodara belt increased its share from 35 per cent to 41 per cent during the year.

Surat ranked 10th among the 21 warehousing markets. Leasing volumes there reached 1.48 million sq ft in 2025, largely driven by activity in the Kosamba–Palsana belt. Grade A rentals in Surat ranged between ₹20 and ₹28 per sq ft per month.

The Vadodara market expanded by 27 per cent to 0.59 million sq ft, with most of the activity concentrated in the Savli–Jarod–Halol belt, which hosts automotive manufacturers. Vapi recorded the fastest growth, with leasing volumes rising by 50 per cent.

The report noted that the market faces tightening supply and limited speculative inventory, particularly in Vadodara. This has pushed up land prices and rentals. In Ahmedabad, Grade A rentals ranged between ₹16 and ₹27 per sq ft per month.

Parikh added that infrastructure projects such as the Dedicated Freight Corridor and the Delhi–Mumbai Industrial Corridor are expected to further strengthen Gujarat’s position as a logistics hub in western India.