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Warehousing space in India to reach 86 mn sq m by 2024
27 Jun '19
2 min read
The total warehousing space for the Indian manufacturing sector is around 68 million sq m now and is projected to grow at a compounded annual growth rate (CAGR) of 5 per cent to 86 million sq m by 2024, according to the ‘India Warehousing Market 2019’ report launched by London-based global property consultancy Knight Frank in association with REED Exhibitions India.
The report was released recently at the’9th India Warehousing Show 2019’ in New Delhi.
The logistics cost in India accounts for 13-14 per cent of the gross domestic product (GDP), which is substantially higher than the figure of 8-10 per cent in other developed countries, the report notes. The primary reason for this is the skewed multi-modal mix and the fact that 60 per cent of freight movement in India occurs via roadways.
The total requirement of storage space in the Indian manufacturing sector accounts for 80 per cent of the warehousing market today. Top warehousing markets in India witnessed an year -on -year (YoY) growth of 77 per cent in leasing between April 2018 and March 2019.
Institutional investors and developers collectively invested over $6.8 billion since 2014 in the Indian warehousing industry, with an average investment per deal of $282 million. Private Equity funds had a 49% share of the total investments into the warehousing industry, says the report.
Eighty three per cent of the investments in warehousing assets went into new developments whereas 10 per cent went into ready assets and 7 per cent into a combination of ready and under construction assets.
The investment committed by institutional investors alone is estimated to create over 15 million sq m of new warehousing space over the next few years.
Kolkata witnessed the highest YoY surge with 191 per cent in warehousing leasing volume over 2017 followed by Bengaluru (147 per cent) and Hyderabad (96 per cent).
Other cities like Coimbatore, Guwahati, Rajpura, Ludhiana, Nagpur, Lucknow, Visakhapatnam, Bhubaneswar and Siliguri are gaining prominence now in terms of the growing demand for warehousing space, according to the report. (DS)
The report was released recently at the’9th India Warehousing Show 2019’ in New Delhi.
The logistics cost in India accounts for 13-14 per cent of the gross domestic product (GDP), which is substantially higher than the figure of 8-10 per cent in other developed countries, the report notes. The primary reason for this is the skewed multi-modal mix and the fact that 60 per cent of freight movement in India occurs via roadways.
The total requirement of storage space in the Indian manufacturing sector accounts for 80 per cent of the warehousing market today. Top warehousing markets in India witnessed an year -on -year (YoY) growth of 77 per cent in leasing between April 2018 and March 2019.
Institutional investors and developers collectively invested over $6.8 billion since 2014 in the Indian warehousing industry, with an average investment per deal of $282 million. Private Equity funds had a 49% share of the total investments into the warehousing industry, says the report.
Eighty three per cent of the investments in warehousing assets went into new developments whereas 10 per cent went into ready assets and 7 per cent into a combination of ready and under construction assets.
The investment committed by institutional investors alone is estimated to create over 15 million sq m of new warehousing space over the next few years.
Kolkata witnessed the highest YoY surge with 191 per cent in warehousing leasing volume over 2017 followed by Bengaluru (147 per cent) and Hyderabad (96 per cent).
Other cities like Coimbatore, Guwahati, Rajpura, Ludhiana, Nagpur, Lucknow, Visakhapatnam, Bhubaneswar and Siliguri are gaining prominence now in terms of the growing demand for warehousing space, according to the report. (DS)
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