Warehousing Sees Rs 1,400 Cr Investment in H1 of 2019
New Delhi: An investment of Rs 1,400 crore in the Indian warehousing industry has been recorded in the first half (H1) of 2019, according to a report by property consultant CBRE.
Warehousing leasing crossed 13 million sq ft in the while about 11 million sq ft of warehousing pace was added in H1 of the current year. Mumbai Chennai and Bengaluru led the leasing activity scenario with about 60 percent of the total leasing being accounted for by three cities. Third party logistics players were responsible for about 56 percent of the total space absorption, a growth of 31 percent as compared to H1 of 2018.
The new launches of warehousing spaces was recorded at 15 million sq ft in H1 of 2019.
As far as rents are concerned, there was a jump of 5-40 percent in National Highway-1 and National Highway-8 in Delhi NCR in H1 of 2019. In Eastern and Western Corridors in Bangalore, the rents went up by 3-24 percent. In Western and Southern Corridors in Hyderabad, the rental increase was 12-18 percent. In Western Corridor II and Northern Corridor in Chennai, the rents went up by 5-7 percent and Narol in Ahmedabad, the rents increased by 3-6 percent.
“While the overall pipeline for the sector is expected to be around 60 million sq. ft. till 2020, at least 22 million sq. ft. of this supply is anticipated to be released by leading players. We also expect logistics leasing activity to strengthen owing to consolidation/ expansion by occupiers. In addition, as per our APAC Investor Intention Survey, 2019, India was among the top five investment destinations in APAC. Industrial & logistics was also one of the top segments expected to be targeted by investors in 2019,” Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa said.