Mumbai, July 30 (IANS) — The demand for warehousing space in India has surged significantly due to robust activity in the manufacturing sector. According to a report by Knight Frank India, warehouse transactions across eight major markets in India totaled 23 million square feet in the first half of this year.
Nearly 55% of these transactions were in ‘Grade A’ spaces, with Mumbai leading the way, accounting for 20% of the total warehousing volume. Delhi-NCR followed, contributing 17% of the total warehousing area transacted, driven primarily by third-party logistics and manufacturing sectors.
“Demand from the manufacturing industry has filled the void left by slower e-commerce growth, broadening the market’s occupier profile,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
Despite challenges in finding suitable land for warehousing development, strong institutional interest is expected to drive the growth of high-quality supply. Pune emerged as the most expensive market for warehousing, with average rents of Rs 26 per square foot per month, followed by Kolkata at Rs 23.8 and Mumbai at Rs 23.6. Pune and Chennai saw a 4% increase in rental rates, while NCR and Kolkata experienced a 3% year-over-year growth.
“India’s strong fiscal health and resilient economy are poised to support and enhance the stability and growth of the warehousing sector through the rest of fiscal year 2024,” Baijal added.
