Ahmedabad: City’s commercial property market has taken a major hit. Commercial property rentals at prime locations like Corporate Road, SG Highway, Prahladnagar, ISKCON, Bopal, Sindhubhavan have declined by 15 to 20 per cent since April.
City Estate chairman Praveen Bawaliya said, “Covid-19 has changed the situation a lot. Many have reduced their staff and vacated large offices and shifted to smaller offices. Many offices in the belt between Rajpath and Ashram Road are getting discounted rates. The property, which used to have an average price of Rs 35 before April, has now come down to Rs 27-30 per square foot. However, prices are unlikely to fall further and now is a good time to rent a property.”
Vijay Dudhat, managing director of Vital Space Management said, “Increase in supply was due to the effect of the covid. In such a situation, the property owner sees that it is better if the property is rented out instead of being vacant. For these reasons, fares have dropped by 15-20 per cent compared to last year. However, we believe that this situation will not be permanent and there will be a gradual recovery. There is no special reduction in large offices or premium property.”
According to experts, it will take another four to five months for the current situation to return to normal. The news about the vaccine has led to a bit of positivity in the market and has led to a gradual recovery in the market and an increase in inquiries. Rents are expected to improve gradually after April.