{"id":821,"date":"2024-04-14T11:10:33","date_gmt":"2024-04-14T11:10:33","guid":{"rendered":"https:\/\/www.floortap.com\/resources\/?p=821"},"modified":"2024-04-16T03:45:19","modified_gmt":"2024-04-16T03:45:19","slug":"warehousing-surge-in-india","status":"publish","type":"post","link":"https:\/\/www.floortap.com\/resources\/warehousing-surge-in-india\/","title":{"rendered":"Warehousing in India: A Landscape of Booming Demand and Rental Growth"},"content":{"rendered":"\n

India’s warehousing sector presents a compelling picture of robust growth, characterized by surging demand, diminishing vacancy levels, and rising rental prices.<\/p>\n\n\n\n

1. Demand Outstrips Supply<\/strong><\/p>\n\n\n\n

The most significant observation pertains to the current imbalance between demand and supply. Pan-India Grade A\/A+ warehousing space boasts a 1.3x demand-to-supply ratio in calendar year (CY) 2023. This translates to significantly more businesses seeking high-quality warehousing than there is currently available.
<\/p>\n\n\n\n

This imbalance isn’t a new phenomenon; it’s been building for some time. While supply has seen its highest annual infusion ever in CY 2023 with 27.1 million square feet (msf) of new space, demand continues to outstrip it.<\/p>\n\n\n\n

2. Shrinking Vacancy Rates Reflect Market Tightness<\/strong><\/p>\n\n\n\n

The tight market conditions are further reflected in declining vacancy levels. Across the top six Indian cities, Grade A\/A+ warehousing vacancy rates saw a 1.3% decrease in CY 2023 compared to CY 2022. This indicates that existing high-quality warehousing space is being filled quickly, leaving even less room for new tenants.<\/p>\n\n\n\n

3. Manufacturing Leads the Warehousing Charge<\/strong><\/p>\n\n\n\n

The surge in demand isn’t random. The manufacturing sector is the biggest contributor, accounting for a substantial 28% of the overall leasing activity in CY 2023. This can be attributed to factors like India’s growing role in global manufacturing and the increasing emphasis on “Make in India” initiatives.<\/p>\n\n\n\n

4. Rental Rates on the Ascendancy<\/strong><\/p>\n\n\n\n

As demand outpaces supply, it’s no surprise that rental rates are climbing. Grade A\/A+ warehousing rents across India witnessed a 7% increase in the fourth quarter (Q4) of CY 2023 compared to the previous 12 months. This trend is likely to continue as long as the supply-demand gap persists.<\/p>\n\n\n\n

5. Hotspots for Growth: Pune and MMR Lead the Pack<\/strong><\/p>\n\n\n\n

While the warehousing boom is pan-India, some cities are experiencing particularly significant growth. Pune and the Mumbai Metropolitan Region (MMR) stand out with impressive Compound Annual Growth Rates (CAGR) of 24% and 18%, respectively, from CY 2018 to CY 2023. These cities are likely to remain attractive options for businesses seeking warehousing solutions.<\/p>\n\n\n\n

Chogle Compound<\/a> in Borivalli East is one of the warehouse spaces in Mumbai ideal for storage of heavy goods, car depots, and open warehousing.<\/p>\n\n\n\n

List your property for free or discover verified commercial properties for buying or leasing on FloorTap<\/a>.
<\/p>\n","protected":false},"excerpt":{"rendered":"

India’s warehousing sector presents a compelling picture of robust growth, characterized by surging demand, diminishing vacancy levels, and rising rental prices. 1. Demand Outstrips Supply The most significant observation pertains to the current imbalance between demand and supply. Pan-India Grade A\/A+ warehousing space boasts a 1.3x demand-to-supply ratio in calendar year (CY) 2023. This translates […]<\/p>\n","protected":false},"author":1,"featured_media":824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[12],"tags":[31,34],"class_list":["post-821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-commercial-real-estate","tag-warehousing-industry-in-india"],"yoast_head":"\nUnlocking Growth: Exploring India's Booming Warehousing Sector<\/title>\n<meta name=\"description\" content=\"Discover the key insights into India's thriving warehousing sector, from surging demand to rising rental prices.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.floortap.com\/resources\/warehousing-surge-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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