& Logistics Update
India’s Warehousing stock grows at 25% y-o-y, total stock expected to cross 375 mn sq ft by 2023
India’s Warehousing Sector has shown substantial growth with absorption moving up to nearly 37 mn sq. ft. in 2019 from 32 mn sq. ft. in 2018. With consolidation in pipelines by end users and e-commerce sector, the future outlook remains positive with expected absorption growth ranging between 15% - 25% over next few years.
Furthermore, the supply is in the right direction with increasing share of Grade A spaces. The inventory has reached 211 mn sq. ft. in 2019 from 170 mn sq. ft. in 2018 and is expected to cross 375 mn sq. ft. by 2023.
Indian Warehousing Stock
Warehousing absorption is gradually increasing in the tier II cities as well. The key cities include Guwahati, Lucknow, Jaipur, Indore, Nagpur, Hosur, Coimbatore, etc. The demand in these cities is primarily driven by e-commerce, 3PL & FMCG occupiers
The sector witnessed a 15% y-o-y growth in total net absorption in Grade A & B warehousing space across top eight cities namely Delhi NCR, Mumbai, Bengaluru, Kolkata, Pune, Hyderabad, Chennai and Ahmedabad. The Delhi NCR region followed by Mumbai and Bengaluru remained the top three cities in terms of warehouse space absorption in 2019. These three cities together account for more than 20 mn sq. ft of absorption. Interestingly, other cities such as Kolkata, Chennai and Pune continued their strong show.
Read the full report, to find out:
- India’s Warehousing Stock growth scenario
- Gross Absorption and Net Absorption of space in 2019 vs. 2018 and focus on Grade A demand
- How project level & platform level deals are confiding to the sector’s growth prospects and more