**Ahmedabad Industrial Market Brief** CapitaLand-backed Ascendas Firstspace has finalized a strategic acquisition of 900,000 square feet of Grade-A warehousing and industrial space in Bawla, Ahmedabad. The transaction, valued at approximately 275 crore, was executed through a forward purchase agreement with the Gujarat-based Crystal Group. This deal marks the formal entry of Ascendas Firstspace into the Gujarat market. The project is slated for a phased development and handover over the next 18 months, ensuring that capital deployment remains closely aligned with construction progress and high governance standards. **Strategic Location and Connectivity** The Bawla micro-market is situated along National Highway 48, making it a critical node for logistics. Its location provides seamless connectivity to the Ahmedabad city center and serves as a vital link between the industrial corridors of Gujarat, Maharashtra, and Rajasthan. The region has seen a surge in demand from third-party logistics (3PL) providers, e-commerce giants, and manufacturing firms. This acquisition addresses the growing need for institutional-grade facilities as occupiers increasingly prioritize operational efficiency and modern infrastructure. **Ahmedabad Market Trends** The Ahmedabad industrial and logistics sector showed strong momentum throughout 2025. Total annual absorption reached 2.2 million square feet, while new supply additions stood at 3.1 million square feet. This increase in supply pushed the overall vacancy rate slightly higher to 14.2%, compared to 12.1% in the previous year. Rental values in the Changodar-Bawla cluster have remained resilient, posting a 5% year-on-year increase. Industrial land prices in the area have followed a similar upward trajectory, appreciating by 4% to 5% as prime land becomes increasingly scarce. **National Sector Performance** The broader Indian warehousing market continues to transition toward Grade-A assets, which now account for 62% of total transaction volumes nationwide. Manufacturing has overtaken third-party logistics as the primary driver of demand, contributing 48% of all leasing activity in early 2025. Average Grade-A rents across India's top eight markets range between 55 and 85 per square foot per month. Despite a slight recalibration in total absorption compared to the record highs of 2024, the sector remains a magnet for institutional investment, with over 10,000 crore in private equity entering the market in the last year. **Economic Outlook** India’s manufacturing momentum is reflected in the Purchasing Managers' Index (PMI), which peaked at 58.4 in mid-2025. Coupled with record GST collections and a stable inflation forecast of 3.7% for the upcoming fiscal year, the industrial real estate sector is well-positioned for sustained growth. Institutional investors continue to favor forward purchase structures like the one seen in the Bawla deal to secure scale and predictable yields in high-growth corridors.