India’s warehousing market continues to show strong momentum, as highlighted in the latest Q2 CY’24 report. Overall, demand remains steady across key sectors. At the same time, major cities are witnessing consistent leasing activity. As a result, logistics operations are expanding across regions.
Moreover, the GRADE A INDIA WAREHOUSING REPORT Q2 CY’24 by CRE Matrix and CREDIA highlights how the market is evolving. In particular, occupier needs are changing. Therefore, quality warehousing spaces are becoming more important. However, while demand stays strong, supply remains relatively tight. Consequently, this creates a balanced yet competitive environment across leading warehousing hubs in India.
Key Findings
- Va
- Vacancy across the top 6 cities declined by 1.7% in the last 12 months.
- Bengaluru saw a 25% increase in supply in Q2 CY’24 vs Q1 CY’24.
- MMR & NCR contributed 52% of the total supply in H1 CY’24.
- MMR & Pune accounted for 48% of total demand in H1 CY’24.
- Passing rentals increased by ~4% YoY on a Pan-India basis.
- Demand-to-supply ratio stood at 1.4x in H1 CY’24.
- Grade A/A+ stock is expected to reach 300 msf by 2025 end.
City-wise Warehousing Detailed Table (H1 CY’24)
| City | Grade A Fundamentals | Market Trends | Warehousing Transaction Size | Major Transactions | Top Markets by Demand | Sector Occupancy |
| MMR | Supply: 3.5 msfDemand: 5.2 msfStock: 45.6 msfVacancy: 7.1% | Strong demand; vacancy at 7.1%; rentals rising | 69% deals >1 lakh sq ft; 14% (50k–1L); 10% (<20k) | DHL – 396,335 sq ftToll India – 275,000 sq ftLP Logiscience – 140,769 sq ft | Bhiwandi, Kalyan, Navi Mumbai, Panvel, JNPT | Electrical/Electronics, E-commerce, 3PL, Others, Automotive |
| Pune | Supply: 2.0 msfDemand: 4.6 msfStock: 38.4 msfVacancy: 6.0% | Demand 2x supply; vacancy declining | 53% deals >1 lakh sq ft; 27% (50k–1L); 15% (<20k) | MRF – 385,000 sq ftAtomberg – 159,442 sq ftMahindra Logistics – 150,952 sq ft | Chakan, Pimpri, Ranjangaon, Mulshi | Electrical/Electronics, Manufacturing, 3PL, Automotive, Others |
| NCR | Supply: 4.2 msfDemand: 3.4 msfStock: 71.3 msfVacancy: 10.6% | Supply higher than demand; higher vacancy | 41% (50k–1L); 39% (>1L); 13% (<20k) | Toyotsu – 183,487 sq ftMochiko – 111,569 sq ftMinda – 100,000 sq ft | Noida, Gurugram, Manesar, Luhari | 3PL, Manufacturing, Electrical/Electronics, Automotive, Retail |
| Bengaluru | Supply: 2.7 msfDemand: 3.2 msfStock: 35.5 msfVacancy: 7.9% | Steady growth in demand & supply | 44% deals >1 lakh sq ft; 30% (50k–1L); 15% (<20k) | Schneider – 999,932 sq ftZomato – 308,181 sq ftPepsiCo – 150,562 sq ft | Bommasandra, Hoskote, Bidadi, Hosur | Manufacturing, 3PL, Automotive, Electrical/Electronics |
| Chennai | Supply: 1.9 msfDemand: 2.9 msfStock: 31.2 msfVacancy: 7.4% | Demand higher than supply (1.5x) | 32% deals (20k–50k); 25% (>1L & 50k–1L); 18% (<20k) | Masterhill – 119,594 sq ftJohnson Lifts – 102,500 sq ftHI-P India – 92,264 sq ft | Oragadam, Panapakkam, Chengalpattu | 3PL, Manufacturing, Automotive, Electrical/Electronics |
| Hyderabad | Supply: 0.5 msfDemand: 1.1 msfStock: 16.5 msfVacancy: 8.3% | Demand higher than supply; vacancy improving | 59% deals >1 lakh sq ft; 22% (50k–1L); 8% (<20k) | Skyroot – 190,000 sq ftDelhivery – 62,936 sq ftRatnadeep – 42,513 sq ft | Shamshabad, Medchal, Patancheru | E-commerce, 3PL, Manufacturing, Retail, Electrical/Electronics |
Pan-India Overview
At the Pan-India level, India’s warehousing market continues to witness steady activity. Overall, supply stood at 14.8 msf, while demand reached 20.3 msf in H1 CY’24. In addition, the total Grade A stock stands at 238.5 msf. Meanwhile, vacancy declined to 8.2%, indicating improving conditions.
Moreover, demand remains concentrated in key cities. For instance, MMR and Pune contributed 49% of the total demand. Similarly, MMR and NCR accounted for 52% of the total supply. Furthermore, manufacturing, 3PL, and electrical/electronics continue to dominate occupancy. Therefore, these sectors remain key demand drivers.
At the same time, rental trends remain stable. In fact, both passing rent and market rent show gradual variation across quarters. As a result, pricing remains balanced. Overall, the market stays well-positioned. Thus, steady demand-supply dynamics and strong sector participation continue to support growth.
Media Mentions
Times Property: Leasing Of Premium Warehousing Spaces To Surpass 45 Million Sq Ft In 2024
Business Standard: Warehousing space demand may dip this year to 45 mn sq ft: Report
