While the supply has risen steadily in the office space in Ahmedabad, the occupation and the lease is broken down in recent quarters.

Moreover, since the last two quarters due to an oversupply of office buildings, only a handful of new commercial real estate projects were launched in Ahmedabad, said developers.

On the retail front, the city has been negative growth, say developers. Industry players also cite occupancy rates weaken a concern in the office space in the Ahmedabad.

What are the provisions in question, about one million square feet of offices was added in Ahmedabad last two quarters. Even according to a recent report by Cushman and Wakefield, real estate consulting firm, while offering little for most of 2010, Ahmedabad witnessed a marginal supply of approximately 100,000 square feet cool in the first quarter of 2011.

“Demand is falling, particularly in the retail space. Moreover, there is a negative supply of commercial spaces, whose properties have been converted into housing projects. The atmosphere was a disappointment,” said Vijay Shah M / s Vijay Shah, the city-based real estate development company.

With regard to hiring and demand was low. While the previous rent was around Rs 40 per square foot per month, industry experts say there is almost no takers at Rs 30 per square foot per month.

“There is now no takers at Rs 30 per square meter per month rent. Correct offices and shop area was imminent,” said Rajeev Shah, CEO of Ahmedabad-based RBSA Advisory Pvt. Ltd, an evaluation consulting firm and consultancy.

Meanwhile, as most offices are bought by investors, their rental yields also decreased gradually.

According to Shah, there are only 30 percent occupancy of office space at 45-50 percent two quarters ago.