The GIFT City Office Market — Supply and Absorption
GIFT City's IFSC zone has 12 million sq.ft. of Grade-A office space planned or under development. Completed and occupied space totals approximately 6.5 million sq.ft. as of mid-2026. Net absorption in FY2025-26 was a record 1.2 million sq.ft. — driven by new IFSC registrations in the insurance, asset management, and global capability centre (GCC) segments.
The tenant profile is distinctive. GIFT City's IFSC-registered tenants include global names: HSBC, BNP Paribas, Goldman Sachs (IFSC entities), global insurance companies, and India's largest private banks and NBFCs. This tenant quality floor is maintained by IFSCA's regulatory requirements — operators must meet capital adequacy norms and governance standards to maintain IFSC registration.
Pricing and Yield Data
Strata office pricing in GIFT City's IFSC zone: ₹12,000–₹18,000 per sq.ft. for completed and occupied buildings from credible developers. Pre-launch pricing for under-construction towers: ₹9,000–₹13,000 per sq.ft. from Tier-1 developers.
Preleased gross yield: 6.2–7.5% for IFSC-registered tenants. The lower yield vs. Prahladnagar reflects the quality premium — IFSC tenants are better covenant, longer leases (5–9 years typical vs. 3–5 years in conventional Ahmedabad commercial), and more structured escalation schedules.
Net yield after maintenance, property tax, and tax (30% bracket investor): approximately 4.0–5.5%. This exceeds FD net returns materially when combined with 7–10% annual capital appreciation in GIFT City's appreciating commercial market.
