Indian warehousing records 23 million sq ft deals, rental growth in April-September
Pune and Chennai at 4% and Ahmedabad with a 3% growth in six months were markets with the most growth, showed a Knight Frank India study. Total 23 million sq ft space transacted in the first half ending September across the top eight markets represents a 10% on-year drop in volume.
Around 53% of these transactions were for Grade A assets.
Transaction activity was well distributed across markets. Pune, the leading market, accounted for 19% of the total warehousing volume, driven primarily by the automotive industry.
Mumbai was the second most prolific market, representing 16% of the total warehousing area transacted during the period, with the third-party logistics (3PL) sector as a significant contributor.
“As the 3PL sector playing a pivotal role in the market and the manufacturing sector exhibiting substantial growth over the past two years, the overall demand from occupiers has remained remarkably resilient, even considering the e-commerce sector's cautious approach during this period,” said Shishir Baijal, CMD, Knight Frank India.
According to him, while the global economic and geopolitical landscape is expected to exert some influence on the Indian market, it is noteworthy that the nation's relatively robust fiscal position and resilient economy are well poised to support the stability and growth potential of the warehousing market in the remainder of fiscal year 2024.
Pune is the most expensive warehousing rental market in the country, amongst the reviewed eight cities, with average rents for grade A warehouses at Rs 25.9 per sq ft a month. Followed by Kolkata with monthly rentals of Rs 23.6 per sq ft and Mumbai at Rs 23.4 per sq ft a month.
Continuing their strong showing in the financial year 2022-23, the
