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23% of warehouse leasing in India in 2018 for e-com: CBRE
16 Jun '19
2 min read
Pic: CBRE
Warehousing space leasing in India rose by over 45 per cent in 2018 to cross the 25 million sq ft mark in seven cities, according to property consultant CBRE, which recently released its report 'Online retail driving realty—Elevating the e-commerce game'. The increase was driven by the e-commerce sector that accounted for 23 per cent of the total demand.
The seven cities are Delhi National Capital Region, Mumbai, Chennai, Kolkata, Hyderabad, Pune and Bengaluru. The demand for better-quality space resulted in rents rising by 10-25 per cent last year.
The report examines the link between e-tailing and the logistics sector and the impact of goods and services tax (GST) on the leasing of warehousing spaces.
"The impressive growth of the e-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smartphone and internet penetration, digital India movement, amongst others," the report said.
The growth in e-commerce sector has led to increase in its share in overall warehousing leasing from 10 per cent in 2017 to 23 per cent in 2018, CBRE said.
"The sector (warehousing and logistic space) has seen unprecedented growth and we expect supply to touch almost 60 million sq ft by the end of 2020," said Anshuman Magazine, CBRE’s chairman and chief executive officer, India, South East Asia, Middle East and Africa.
CBRE said that the increased demand would also pave way for opportunities such as asset enhancements and redevelopments. Many grade B warehouses located close to cities will undergo redevelopments as per occupier specifications, the report added. (DS)
The seven cities are Delhi National Capital Region, Mumbai, Chennai, Kolkata, Hyderabad, Pune and Bengaluru. The demand for better-quality space resulted in rents rising by 10-25 per cent last year.
The report examines the link between e-tailing and the logistics sector and the impact of goods and services tax (GST) on the leasing of warehousing spaces.
"The impressive growth of the e-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smartphone and internet penetration, digital India movement, amongst others," the report said.
The growth in e-commerce sector has led to increase in its share in overall warehousing leasing from 10 per cent in 2017 to 23 per cent in 2018, CBRE said.
"The sector (warehousing and logistic space) has seen unprecedented growth and we expect supply to touch almost 60 million sq ft by the end of 2020," said Anshuman Magazine, CBRE’s chairman and chief executive officer, India, South East Asia, Middle East and Africa.
CBRE said that the increased demand would also pave way for opportunities such as asset enhancements and redevelopments. Many grade B warehouses located close to cities will undergo redevelopments as per occupier specifications, the report added. (DS)
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