AHMEDABAD OFFICE JUNE 2019

MARKETBEATS
0.13 msf 1.93 msf 3.56 msf
N E T A B S O R P T IO N N E W C O MP L E T IO N S U P C O MIN G S U P P L Y
(Q2 2019) (Q2 2019) (H2 2019 - 2021)

HIGHLIGHTS MARKET INDICATORS OVERALL

Q2 2018 Q2 2019
12 month
Forecast

Continued sluggishness in leasing activity Overall Vacancy 38.6% 50.1%

Weighted Average Net
Sluggishness continues to pervade the Ahmedabad office market with just 88,200 sf of leasing Asking Rental (INR/sf/month) 40.6 40.3
activity recorded in the second quarter of 2019. Net absorption at 132,000 sf was marginally YTD Net Absorption (sf) 120,800 259,900
higher by 3.5% q-o-q on the back of some pre-leasing in a newly completed project. BFSI,
ALL GRADES OVERALL RENT
Professional Services occupiers and Flexible workspace operators were the major & VACANCY RATE - CBD
contributors towards leasing activity accounting for nearly 70% of total space take-up. S.G.
Highway dominated with a 48% share of leasing, followed by the CBD with a 41% share. BFSI 42 25%
40 20%
and IT-BPM occupiers are expected to drive demand for office space in the coming quarters.
38 15%

Increased supply adds to vacancy pressure 36 10%

34 5%
With completions totaling 1.93 msf amid sluggish demand, vacancy has risen to 50.1%. The
32 0%
SG Highway submarket had a 73% share of new completions during the quarter. Going 2013 2014 2015 2016 2017 2018 Q1 Q2
2019 2019
forward, an additional supply of nearly 3.6 msf is slated for completion till end-2021 with most Net Asking Rental (INR/sf/month) Vacancy Rate (%)
of it concentrated in the SG Highway submarket followed by Gandhinagar and
ALL GRADES PRE COMMITMENT AND NET
Satellite/Prahladnagar corridors. With no significant pre-leasing witnessed and demand levels ABSORPTION - CBD
to remain largely stagnant, we expect vacancy levels to remain high in the coming quarters. 80
60
Rents increased marginally in S.G. Highway
40
Select projects with moderate occupancy levels in the SG highway submarket saw some
20
A Cushman & W akefield rental growth during the quarter resulting in a marginal increase in weighted average rentals
0
Research Publication 2013 2014 2015 2016 2017 2018 Q1 2019 Q2 2019
during the quarter for the overall city as well. Going forward, we expect the high vacancy
Pre-commitment (000' sf) Net Absorption (000' sf)
www.cushmanwakefield.com levels to keep the weighted average rentals range-bound.
 AHMEDABAD OFFICE
MARKETBEATS JUNE 2019
PLANNED & YTD GRADE A WTD. AVG. RENT*
Rohan Sharma INVENTORY VACANCY YTD LEASING UNDER CONSTRUCTION
YTD NET
Director
SUBMARKET (SF) RATE ACTIVITY (SF) CONSTRUCTION COMPLETIONS
ABSORPTION
INR/SF/MO US$/SF/YR EUR/SF/YR
(SF)
Research Services (SF)^ (SF)
Tel: +91 124 4695555 €6.2
S. G. Highway 8,983,800 46.1% 69,700 1,550,300 1,418,400 79,700 40.67 $7.0
Rohan.sharma1@cushwake.com
Satellite / Prahladnagar 5,866,800 45.5% 69,200 365,300 613,800 104,200 41.33 $7.1 €6.3

TOTAL# 18,989,100 50.1% 174,900 3,560,300 2,382,200 259,900 40.29 $7.0 €6.1
The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for changes in built-up /
leasable area besides adjusting tenant leases to reflect accurate market conditions.
^ Includes planned & under construction projects until 2021
Net absorption refers to the incremental new space take-up; leasing activity includes fresh transactions and term renewals
*Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
# Total figures contain submarkets not mentioned above
IT-BPM – Information Technology – Business Process Management
US$ 1 = INR 69.55; € 1 = INR 79.1
Numbers for the second quarter are based on market information collected until 20 th June 2019

KEY LEASING TRANSACTIONS Q2 2019

PROPERTY SUBMARKET TENANT SF LEASE TYPE

Privilon SG Highway E&Y 20,000 New lease

Ratnakar Nine Square SG Highway Regus Business Center 15,000 New lease

BVR Ek CBD SBI Bank 11,000 New lease

BVR Ek CBD Bajaj Finance 8,000 New lease

SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION

A Cushman & W akefield

PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE
Research Publication
Shivalik Satyamev S. G. Highway NA 392,000 Q2 2020

Colonade 2 S. G. Highway NA 230,000 Q4 2020

Cushman & Wakefield (NYSE: CWK) is a leading global real estate
services firm that delivers exceptional value for real estate occupiers Prestige Tower Gandhinagar NA 210,000 Q4 2019
and owners. Cushman & Wakefield is among the largest real estate
services firms with approximately 51,000 employees in 400 offices
and 70 countries. In 2018, the firm had revenue of $8.2 billion across
Shilp Zaveri Satellite/Prahladnagar NA 200,000 Q4 2020
core services of property, facilities and project management, leasing,
capital markets, valuation and other services. To learn more, visit
www.cushmanwakefield.com or follow @CushWake on Twitter.

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Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.