According to a survey released on Tuesday, warehouse transactions in eight major Indian marketplaces totaled 23 million square feet in the first half of this year, driven primarily by the country’s industrial industry.
As per Knight Frank India’s study, nearly fifty-five per cent of these transactions took place in ‘Grade A’ facilities, with Mumbai leading the way with twenty per cent of the total warehousing volume.
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, “demand from the manufacturing sector has compensated for the lull in e-commerce and helped broad base the market’s occupier profile.”
He continued, “High institutional interest in this space should enable development of high-quality supply, even though the availability of viable land for warehousing development remains a challenge.”
The manufacturing and third-party logistics industries drove volumes in Delhi-NCR, which was the second most active market during the period, accounting for 17% of the total warehouse space traded.
Pune has the highest average monthly rate per square foot for warehouse rentals, making it the most expensive market.
Kolkata and Mumbai came next, with monthly rental rates of Rs 23.8 and Rs 23.6, respectively, per square foot.
According to the research, Pune and Chennai demonstrated a 4 per cent increase in rentals, while NCR and Kolkata showed a 3 per cent YoY growth.
“India’s robust fiscal position and resilient economy are well-positioned to sustain and enhance the warehousing market’s stability and growth potential for the remainder of fiscal year 2024,” Baijal stated.
Global manufacturing behemoths like Apple, Samsung, Foxconn, and TSMC have increased their manufacturing base in the nation, attesting to the benefits of the ongoing shift towards decentralization of manufacturing capacity.
