 |
| Petrebels/Unsplash |
The pandemic is ebbing and everything is suddenly bigger in India, including the demand for warehouses. Leasing activity in India's warehousing segment stood at 14 million sq. ft. in H1 (January-June) 2021, a half-yearly growth of more than 13%.
Per CBRE's latest report - India Industrial and Logistics Market Monitor for H1, new warehousing supply also increased by 5%, to 11 million sq. ft. in the January-June 2021 period compared to the second half of the calendar year 2020.
What's Moving?
Medium to large-sized grade-A warehouses (more than 50,000 sq. ft.) saw the most leases, with a share of about 62% of all transactions during H1, 2021.
Third-party logistics firms (3PL), e-commerce players and retailers were the major demand drivers.
Where's The Action?
Chennai accounted for almost a third of the total new supply addition in H1, 2021, followed by Delhi-NCR (19%) and Mumbai (16%).
Also worth noting is that Ahmedabad, Hyderabad and Chennai witnessed half-yearly rental growths of 2% to 14% during the January-June period.
Warehousing deals that were put on hold because of the pandemic were pushed over the finish line once retailers were confident of reopening stores amid increasing footfalls and consumer demand.