23 mn sq. ft. of warehouse space transacted in April-Sept

Rising lease rentals for logistical spaces across the top eight markets in India, demonstrate the resiliency of the warehouse demand during the half-year that concluded in September. Pune, Chennai, and Ahmedabad were the markets that showed the highest growth.

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A study by Knight Frank India revealed that about 23 million square feet of space had been transacted across the top eight markets in the first half that ended in September. Approximately 53% of these deals were for Grade A assets. 

The markets that exhibited the highest growth included Pune (4%), Chennai (4%), and Ahmedabad (3%). 

Driven largely by the automobile industry, Pune emerged as the largest market accounting for about 19% of the total warehousing volume. Mumbai emerged as the second fastest-growing market accounting for about 16% of the total warehouse area transacted during the period.

Amongst the eight cities that were reviewed, Pune was found to be the most expensive warehouse rental market in the country. The average rent for grade A warehouses in Pune is Rs 25.9 per sq ft a month. Kolkata and Mumbai come next, with monthly rents at Rs 23.6 and Rs 23.4 respectively, per square foot.

Shishir Baijal, CMD, Knight Frank India, said, “As the 3PL sector plays a pivotal role in the market and the manufacturing sector exhibited substantial growth over the past two years, the overall demand from occupiers has remained remarkably resilient, even considering the e-commerce sector’s cautious approach during this period.” 

He further added that the nation’s relatively robust fiscal position and resilient economy are well poised to support the stability and growth potential of the warehousing market in the remainder of fiscal year 2024. However, the global economic and geopolitical landscape is expected to exert some influence on the Indian market, he said.