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.
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