Warehousing leasing tops Indian markets

Warehousing leasing across the top eight 1 markets of India has recorded a historic high in transactions in Financial Year (FY) 2022 at 51.3 million square feet (mn sq ft). Leasing transactions catapulted by 62% year-on-year (YoY) surpassing the previous, pre-covid peak, thus setting a fresh benchmark as occupiers revived expansion plans shaking off the last vestiges of the pandemic.

This is as per Knight Frank India’s flagship report on Warehousing titled ‘India Warehousing Market Report – 2022’ which has also assessed the warehousing activities in 18 secondary markets across India.

The Third-Party Logistics (3PL) sector, which constituted 31% of all transactions, leased 14.9 mn sq ft of warehousing space, registering a 50% YoY growth. This was followed by ‘other manufacturing’ 2 sectors and e-commerce. The e-commerce sector grew by 17% YoY in FY 22. The sector, which was previously the highest lessor of warehouse continued its surge, albeit at a lower rate, mainly due to the already large capacities built up in the previous years.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The high growth rate of organised warehousing sector in India is a result of its rising GDP and consumerism… The government’s push toward the development of infrastructure and India’s new Logistics Policy will help in the surge. With the strong demand recorded in the secondary markets, the warehousing momentum is gaining shape even beyond the top 8 markets in the country and the development of Multi Modal Logistics Parks will further create more warehousing zones covering the geographic expanse of the country.”