Ahmedabad, the largest city of Gujarat, is a highly potent and emerging industrial as well as commercial hub. Its conducive environment provides the perfect conditions for businesses and industries to flourish. Apart from this, the city has also been a centre for the pharmaceutical, chemical and textile industries.

As a result of its prime location and dynamic development in the city, there is a boom in the real estate industry. With its strategic location and robust infrastructure the demand for warehousing and industrial real estate in Ahmedabad has risen.

Ahmedabad’s excellent connectivity and favourable business environment attract many manufacturing and logistic companies leading to the building of industrial parks and logistics hubs. The rise of manufacturing companies is directly proportional to the rise in demand for warehouses to store the yield. Similarly, the influx of industries calls for the setting up industrial real estate infrastructure in the city.

The key factors driving the growth of Ahmedabad’s warehousing and industrial real estate market are as follows:

Strategic location:

Situated in western Gujarat, the city’s prime location makes it an attraction for businesses and industries. Its smooth connectivity across road, rail and air makes it an ideal logistics and distribution centre. The presence of the Dedicated Freight Corridor and the Ahmedabad-Mumbai Industrial Corridor further enhances the city’s connectivity and accessibility.

Flourishing manufacturing sector:

Ahmedabad’s manufacturing sector encompasses various industries including textiles, pharmaceuticals, chemicals, engineering, and automobile components. Fostered by the diverse skill force of the city, ithas led to the demand for industrial real estate infrastructure. The city is also considered a potential base for many start-ups falling under the ‘Made in India’ motive.

Favourable Business Environment:

Diverse categories of men and women workforces, improving infrastructure and extremely good connectivity favour a healthy business environment. Catering to the domestic and international fronts, the ease of running business, investor-friendly policies, and availability of incentives or subsidies is also a major cause of this demand. The GIDC also work year-round to ensure favourable business environments.

Growth of E-commerce and Logistics:

The exponential rise in the e-commerce market demands quick and reliable logistic assistance. This in turn can be fuelled with the correct infrastructure such as the warehouses located near the urban centers or prime areas of the city. Ahmedabad’s proximity to major markets and excellent transportation links make it an attractive choice for fulfilling these requirements.

Infrastructure development:

The city is home to modern industrial parks, special economic zones, and integrated logistics parks furnished with state-of-the-art facilities. The availability of ample land, both for rent and purchase, caters to the needs of business owners.

Cost Advantage:

In comparison to the other metropolitan cities, the cost of living, land price, and labour are less. This, along with the availability of a skilled/organised workforce at competitive wages, fuels up the demand for warehouse and industrial real estate infrastructure.

The growing demand for warehousing and industrial real estate in Ahmedabad reflects the city’s emergence as a dynamic business destination. Its strategic location, flourishing manufacturing sector, favourable business environment, infrastructure development, and cost advantages have presented Ahmedabad as a preferred choice for businesses seeking to
expand or establish their operations. As the city continues to attract investments and witness robust economic growth, the demand for industrial real estate is expected to soar, contributing to Ahmedabad’s development as a thriving industrial and logistics hub.

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