GUJARAT’S NEW REAL ESTATE STORY

Q Gujarat has emerged as a key real estate market. What is driving the state’s next phase of growth?

Gujarat’s real estate market is increasingly driven by industrial expansion, logistics, infrastructure, financial services and urbanisation. The biggest structural advantage is the alignment between economic growth and physical infrastructure, supported by roads, ports, industrial estates and logistics networks. The second major driver is industrial diversification into electronics, semiconductors, renewable energy, advanced manufacturing and data centres. Ahmedabad and GIFT City will remain important engines of urban real estate. At the same time, geographic decentralisation is driving growth across corridors around Sanand, Dholera, Kheda, Changodar, Rajkot, Bharuch and Dahej, creating demand for industrial, logistics, office and mixed use developments.

Q How is Gujarat’s industrial growth driving demand for industrial and warehousing real estate?

Gujarat’s industrial real estate market is moving beyond traditional manufacturing, chemicals, engineering, automobiles and logistics towards a more sophisticated ecosystem. High-value manufacturing clusters, particularly semiconductors, are driving this shift, with Micron in Sanand, Tata’s proposed Rs. 91,000-crore Dholera facility, and projects by CG Power and Kaynes. These anchor investments create a multiplier effect, generating demand for suppliers, precision manufacturing, engineering, chemicals and logistics, and shifting the focus towards integrated industrial ecosystems. Automotive, electronics and renewable energy are also driving demand for Grade A, compliant and built-to-suit facilities. Warehousing is spreading across Aslali–Kheda, Changodar Bagodara, Sanand, Vadodara–Halol, Surat–Palsana/Kosamba and Vapi, supported by DFC, DMIC and stronger connectivity.

Q What does a genuinely sustainable real estate ecosystem look like for Gujarat, and are developers and occupiers willing to pay for greener infrastructure?

Sustainability in Gujarat’s real estate sector must be treated as an economic proposition, not just an environmental one. Energy efficiency, renewable power, water conservation, recycling and efficient mobility need to be planned across the entire industrial or urban ecosystem. For industrial assets, these measures can reduce operating costs, while shared utilities and renewable infrastructure can improve viability. Green certifications are expanding beyond offices, but developers and occupiers increasingly pay for measurable performance, not labels. Though green buildings may cost 3–5% more upfront, energy savings can reach 30–35%. With ESG requirements rising, Gujarat can build more resilient, competitive and valuable industrial corridors.