Warehousing sector sees 44% CAGR growth in last 3 yrs
New Delhi: Warehousing sector saw a healthy demand in the last fiscal 2019-20 with Pune market seeing 42 percent jump in leasing activity over the previous fiscal. Mumbai and Ahemedabad markets also saw 8 percent and 5 percent jump in leasing activities respectively, according to a report by Knight Frank. Overall gorth has been
The Cap rates witnessed a big drop in the previous decade from 12-15 percent in 2011 to just 8.5-9.5 percent in 2019. The rents of good quality warehousing space remained stable in the last fiscal at Rs 13-32 per square feet per month.
The third party logistics (3PL) has seen good growth and its share in overall warehousing demand has now jumped to 36 in the last fiscal.
The Goods and Service Tax has also caused the growth of the industry. The growth has been to the tune of 44 percent CAGR since 2017.
Demand of warehousing spaces in tier 2 cites have also been growing. The cities of Patna and Jaipur have seen the demand go up by 200 percent and 223 percent respectively in the last fiscal over the previous year. Guwahati has seen a growth of 42 percent and Lucknow has witnessed a growth of 26 percent.
The total warehousing space in the county stands at 21,163 acres. Out of this, Mumbai accounts for 6,625 (121 million square feet) acres and Delhi NCR accounts for 4,178 (57 million square feet) acres. Chennai and Bengaluru have 2,361 acres (24 million square feet and 2,210 acres (25 million square feet) respectively.