New Delhi, March 1, 2018: Knight Frank India launches the third edition of its flagship India Warehousing Market Report 2018. The report unravels the present scenario of the Indian logistics sector along with providing a definitive view on the country’s top warehousing markets which include Mumbai, NCR, Bengaluru, Chennai, Pune, Hyderabad and Ahmedabad.
- The annual transaction volumes of warehousing space in the National Capital Region were 6.5 mn sq. ft 2017 – the highest across key Indian markets
- The transaction volumes recorded a staggering 129% growth over 2016
- Large occupiers like Amazon, Safexpress and Decathlon to name a few have committed huge spaces
- While the Equity IRR achievable for a development project at the NH – 48 cluster was up to 26% – the second highest pan-India, the investment return in the Ghaziabad cluster was 22%
- Most of the warehousing activity is concentrated in the NH-48 cluster and Ghaziabad cluster
Speaking on the report findings, Balbirsingh Khalsa, National Director – Industrial and Asset Services, said, “Post GST the NCR market recorded a staggering 129% growth as companies who were till now in a wait and watch mode have now got into execution mode. For the first time we are witnessing consolidation and expansion of warehousing space. This increase in demand from sectors such as e-commerce, 3PLs, Consumer Durables, FMCG and Manufacturing to name a few coupled with a requirement for larger sized warehouses has opened up the field for more and more organised players which has led to a demand. We expect the trend to continue and get better in the days to come.”
Dr. Samantak Das, Chief Economist & National Director – Research, said, “With so much happening around in terms of the Make in India programme, One Nation One Tax – GST, traction on industrial corridors and the infrastructure status to the logistics sector, warehousing as a real estate constituent would be a real beneficiary in the times to come. Across the top 8 cities in the country, we have seen transaction volumes jump by 85% YoY to 25.7 mn sq ft in 2017. Investors had started taking cognizance of the opportunities in this sector much before the government could implement the reforms. The past few years have witnessed massive participation from institutional investors. Some of them have purchased ready assets, whereas others are investing in a mix of ready and Greenfield assets.”