India's Grade A Warehousing Market to Surpass 45 Million Sq Ft in 2024
The Indian real estate market is evolving rapidly, with specialized segments like warehousing complementing the robust growth of the more traditional segments. Cities like Pune and MMR have emerged as critical industrial hubs, accounting for nearly 50% of
Grade A WarehousingIndian Real Estate MarketLogisticsIndustrial SectorsCredaiCre MatrixReal Estate PuneOct 04, 2024
The report revealed that the warehousing demand/leasing of 20.3 million sq ft in H1 2024 far surpassed new supply, which stood at 14.8 million sq ft. The segment also recorded the lowest ever vacancy rate of 8.2%. Pune has witnessed demand for Grade A warehousing space, contributing significantly to overall demand in the market. In H1 2024, Pune alone accounted for 48% of the total demand registered in the MMR-Pune region. Despite a surge in demand, Pune faces a supply shortage, with the demand-to-supply ratio hitting 2x, indicating the potential for significant new development in the coming quarters.
Similarly, Chennai registered a demand-to-supply ratio of 1.6x, highlighting the increasing attractiveness of its logistics infrastructure. With a vacancy rate of just 7.4%, the city is poised to maintain its upward trajectory as more industries look to establish a presence in this vital southern market. This also indicates the region's emerging role as a logistics and manufacturing hub. Warehousing rentals increased by 4% YoY due to the gap between the burgeoning demand for high-quality warehousing.
Frequently Asked Questions
What is the projected growth of Grade A warehousing market in India in 2024?
The Grade A warehousing market in India is set to cross 45 million sq ft in 2024.
Which cities are driving the growth of Grade A warehousing market in India?
Mumbai Metropolitan Region (MMR), Pune, and NCR are collectively accounting for 64% of the total demand.
What is the current vacancy rate in the Grade A warehousing segment?
The segment recorded the lowest ever vacancy rate of 8.2%.
What is the projected stock of Grade A warehousing in India by 2025?
The country's Grade A warehousing stock is projected to surpass 300 million sq ft by 2025.
What are the driving factors for the growth of Grade A warehousing market in India?
The growth is driven by the increasing demand for high-quality warehousing, low wages, technology push in manufacturing, and ease of doing business.
Related News Articles
Aadhar Housing Finance Eyes Sustained Growth of Over 20% in Disbursements and Asset Base
Aadhar Housing Finance projects disbursements and assets under management to grow at over 20% this year
No Reversal on Real Estate LTCG Tweaks: Government Stands Firm
Government sources have confirmed that there will be no reevaluation of the changes made to Long Term Capital Gains tax (LTCG) in the Union Budget, despite concerns over the removal of Indexation benefit on property sales.
Navigating the Industrial REIT Landscape: A SWOT Analysis of EastGroup Properties
EastGroup Properties, a real estate investment trust (REIT) specializing in industrial properties, is at a crossroads in the ever-evolving industrial REIT landscape.
Godrej Group Makes Major Move in Mumbai Real Estate by Acquiring Land for Rs 81 Crore
In a strategic move, Godrej Group, through its real estate subsidiary Anamudi Real Estates, has acquired a significant plot of land in the bustling city of Mumbai for Rs 81 crore. This acquisition marks a major step in the company's expansion plans in one
Why Pattaya is the Next Big Thing for Indian Property Investors
A luxury sea-view condo in Pattaya costs as much as a mid-range apartment in Mumbai. Discover why Pattaya is quickly becoming a hot spot for Indian property investors, offering exceptional value and potential returns.
Akshaya Tritiya: Can It Spark a Surge in Real Estate Demand?
With reduced EMIs making home loans more affordable, Akshaya Tritiya could be the catalyst for a surge in real estate demand, especially in the luxury and high-end market segments.