Ahmedabad: After years of volatility, Gujarat’s commercial real estate sector is witnessing strong revival: the state recorded 245 new commercial project launches in 2024-25 — highest since 2019-20, when 269 projects were registered. Commercial unit registrations also hit a post-Covid peak, with 31,520 units launched, according to a recent GujRERA report. Commercial project registrations dropped by 58% in 2020-21 — the peak Covid year, as work-from-home culture and lockdowns disrupted demand. “Office demand declined sharply, and sectors like entertainment, food, gyms, and tuition classes were hit. Naturally, new launches fell during and after Covid. But demand is picking up, and we’ve seen more launches across in the past year,” said Tejas Joshi, vice-president, Credai Gujarat.Tejas Joshi, vice-president, Credai Gujarat, says “Cities like Ahmedabad have also seen encouraging growth in rental values.”Green construction is another major trend shaping the recovery. “In larger cities, nearly 40-50% of commercial projects are now green buildings. State govt incentives — such as 7-12% relief on chargeable FSI — have driven this shift. Buyers, too, prefer green buildings for their 30% or more savings in electricity costs,” said Taral Shah, co-chairman, Indian Green Building Council (Ahmedabad chapter).According to GujRERA, commercial launches grew modestly in 2018-19 (3.9%) but plunged in 2019-20 and 2020-21 (both -37%), with a steep -63.9% drop in investment in 2020-21. The sector rebounded in 2021-22 (43.5% growth in projects, 53.4% in units) and again in 2023-24 (68.2% growth in investment). The momentum has continued into 2024-25, with a 15.6% rise in projects and 20.7% in investment.Ahmedabad alone registered 72 commercial projects in 2024-25, attracting investments worth Rs 3,394 crore. “The average cost per unit dropped from Rs 34 lakh in 2017-18 to Rs 25 lakh in 2022-23 but surged to Rs 44 lakh in 2023-24 and settled at Rs 40 lakh in 2024-25, indicating a tilt toward higher-value commercial spaces,” the report states.The average number of units per project declined from 137 in 2018-19 to 107 in 2021-22, recovered to 131 in 2023-24, and slightly dipped to 118 in 2024-25 — a sign of evolving market dynamics. “Recent trends, with a stable 118 units per project and Rs 40 lakh per unit in 2024-25, hint at a maturing, demand-driven commercial sector that is adjusting to modern business needs,” the report concluded.