Supply of warehousing space doubles to 15 mn sq ft in H1 2021
New Delhi: The supply of warehousing space touched 15 million square feet of new building completions in the first half (H1) of 2021, a two-fold jump from the levels seen in H1 2020. The developers are fast-tracking the completions to benefit from the burgenoning demand for spaces in the industrial and warehousing category.
Delhi NCR had a share of almost 63 percent of the new warehousing space supply delivered in H1 of 2021. This was followed by Mumbai with 15 percent share and Chennai with 11 percent share, according to a report by Colliers India.
The vacancy rate was at 12 percent in the country on average. Bengaluru and Chennai saw the least vacancy at 6.3 percent. Pune and Delhi NCR had the maximum vacancy at 17.9 percent and 17.4 percent respectively.
All the major cities in the country witnessed an increase in rentals in H1 of 2021. Bengaluru witnessed the highest jump in rentals at about 19 percent.
“The behavioral shift of consumers from offline to online shopping is contributing to increased demand across the spectrum of industrial and logistics property. Third-Party Logistics players coupled with E-commerce companies remain the major demand drivers of warehousing space in H1,2021 (more than 50 percent of the demand in the top 5 cities). On the supply side, we have seen a robust supply addition of more than 15 million square feet added across markets. However, material price increase /fluctuations (especially of steel) have put a strain on the speedy development plans of developers. We anticipate further growth of warehousing demand as we head into the festive season and expect demand to remain upbeat through H2 2021”, said Shyam Arumugam, Managing Director, Industrial & Logistics Services (India).