Blitz Bureau
NEW DELHI: Amid growing demand from the manufacturing sector, warehouse transactions across eight primary markets in India were recorded at 23 million square feet in the first half this year, a report showed on July 30. Almost 55 per cent of these transactions occurred in Grade A spaces, led by Mumbai which accounted for 20 per cent of the total warehousing volume, according to the report by 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,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “While the availability of viable land for warehousing development remains a challenge, high institutional interest in this space should enable development of high-quality supply,” he added.
Delhi-NCR was the second most prolific market, representing 17 per cent of the total warehousing area transacted during the period, with third-party logistics and manufacturing sectors driving volumes. Pune was the most expensive warehousing rental market, with average rent at Rs 26 per sq ft a month. It was followed by Kolkata with a rental rate of Rs 23.8 per sq ft monthly and Mumbai at Rs 23.6 per sq ft a month.
