Warehousing space rises 85% to 25.7 mn sq ft in 2017: Report
Warehousing space leasing rose by 85 per cent to 25.7 million square feet in eight major cities during 2017, driven by high demand in Mumbai and Delhi-NCR, according to real estate advisory firm Knight Frank.
The advisory firm in a report titled ‘Knight Frank Warehousing Report 2018’ further said around USD 3.4 billion (Rs 22,100 crore) of institutional capital came in the warehousing sector between January 2014 and January 2018.
According to the report, the National Capital Region (NCR) attracted the highest footprint in terms of transactions in the warehousing space with leasing of 6.5 million square feet in 2017, followed by Mumbai at 5.2 million square feet.
The report further said Mumbai recorded the largest year-on-year growth over other key Indian markets with 231 per cent jump in warehousing space leasing in 2017, followed by NCR with 129 per cent rise.
Bengaluru (90 per cent), Ahmedabad (86 per cent) and Hyderabad (68 per cent) witnessed double digit growth.
Greenfield projects or new developments attracted more than two-third of these investments followed by 27 per cent for acquisition of completed projects.
More than one out of four (26 per cent) private equity Investments in the Indian real estate sector between January 2014 and January 2018 went into the warehousing industry, the report said.
Speaking on the report findings, National Director – Industrial and Asset Services Balbirsingh Khalsa said post GST, the NCR market recorded a staggering 129% growth as companies who were till now in a wait and watch mode have now got into execution mode.
For the first time, we are witnessing consolidation and expansion of warehousing space, Khalsa said, “We expect the trend to continue and get better in the days to come”.
Also speaking on the report findings, Chief Economist & National Director – Research Samantak Das said, “Across the top 8 cities in the country, we have seen transaction volumes jump by 85 per cent year-on-year to 25.7 million square feet in 2017”.
The country’s top warehousing markets include Mumbai, NCR, Bengaluru, Chennai, Pune, Hyderabad and Ahmedabad.