I&L sector growth in Ahmedabad

The industrial and logistics (I&L) landscape in Ahmedabad has experienced a remarkable growth in the last year, which has let a surge in the demand of I&L spaces. This bodes well for city's future as a major I&L hub, attracting diverse industries and contributing significantly to the local economy.

Net absorption witnessed a significant surge, reaching 1 million sq ft in H2 2023, compared to new completions of 0.8 million sq ft. This resulted in a positive net absorption of 0.2 million sq ft, highlighting the strong appetite for industrial and logistics space in the city.

Several factors contributed to this growth, including the expanding presence of e-commerce companies, the strategic importance of establishing manufacturing and logistics facilities near major consumption centres, and an overall improvement in business sentiment across the country.

Leading the demand was engineering and manufacturing (60%) and third-party logistics (3PL) (34%) sectors, reflecting the city's growing attractiveness for these industries. The telecommunications sector also displayed promising growth, accounting for 6% of the total absorption.

Key micro-markets like Changodar, Bavla, Sanand, Aslali, and Kheda witnessed significant leasing activity in H2 2023, further solidifying Ahmedabad's position as a preferred destination for I&L operations.

With a robust demand exceeding supply and several key micro-markets flourishing, the future of Ahmedabad's I&L sector appears exceptionally bright. The strategic location, improving business sentiment, and diverse industry interest indicate sustained growth in the coming years. CBRE India remains confident in the sector's potential to fuel Ahmedabad's economic engine and shape a thriving industrial landscape.

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