MIDC-Thane, Greater Noida, Manesar top in land costs for warehouses

economictimes.indiatimes.com:

Manesar and Greater Noida in the NCR and Maharashtra Industrial Development Corporation (MIDC) in Thane are among the costliest locations to acquire land for building a warehouse, with prices ranging from '15-30 crore per acre, compared to the average price of '2-5 crore per acre in other top markets in the country, according to CBRE.

Supply and absorption of warehousing space reached a new high as the pandemic propelled demand for e-commerce and retail, while FMCG continued to perform well, the real estate consultancy said.

Total leasing in 2023 stood at 38.8 million square feet across eight cities, CBRE said in a report.

«As we envision the future of the industrial and logistics sectors, this robust growth is a testament to the sector's resilience despite global economic challenges,» said Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East & Africa, CBRE.

Total Industrial and Logistics (I&L) space supply hit a new peak of 36 million sq ft in 2023.

The move towards more structured operational models in industries such as retail, FMCG, and manufacturing is spurring demand for efficient last-mile delivery solutions, leading warehousing firms to actively explore markets to meet this demand.

During the year, I&L space leasing was predominantly steered by third-party logistics firms with a combined market share of about 45%. Within this sector, occupants from diverse industries such as ecommerce, retail, and manufacturing chose to outsource their supply chain operations to these firms.

«Witnessing diverse occupancies in I&L leasing from 3PL, e-commerce, retail, and manufacturing sectors indicates streamlining supply chain operations.