India’s Grade A warehousing market recorded strong demand in H1 CY’23. The sector witnessed healthy leasing activity across major cities. Demand for Grade A warehousing space reached 13 msf during the period. Moreover, 3PL companies continued leading warehouse space absorption. MMR, Pune, and NCR remained key warehousing markets across India.
According to the Grade-A India Warehousing Report H1 – CY’23 by CREDAI National and CRE Matrix, India’s Grade A warehousing stock reached 163.7 msf in H1 CY’23. Vacancy levels remained stable at 8.8% during the period. Furthermore, total Grade A warehousing demand across all grades reached 26.8 msf. The market also witnessed healthy rental growth across major logistics hubs.
MMR and NCR Lead Grade A Warehousing Demand
MMR and NCR emerged as the top Grade A warehousing markets in H1 CY’23. Both regions contributed nearly 54% of the total warehousing demand during the period. MMR and NCR also contributed 49% of the total warehousing supply across India. Therefore, both markets remained key logistics and industrial hubs.
MMR recorded 3.8 msf Grade A warehousing demand in H1 CY’23. The market also witnessed strong leasing activity from 3PL and e-commerce companies. Delhivery leased 7,59,259 sq ft at Welspun One Logistics Parks in MMR. Croma also leased 5,58,789 sq ft in the same logistics park. The region’s Grade A warehousing stock reached 32.8 msf during the period.
Delhi-NCR also witnessed healthy Grade A warehousing activity in H1 CY’23. The region recorded 2.8 msf Grade A warehousing demand during the period. Demand remained strong across 3PL, retail, and manufacturing sectors. Major transactions included deals by Delhivery and Damco India. NCR’s Grade A warehousing stock reached 51.5 msf in H1 CY’23.
Pune Warehousing Market Records Strong Activity
Pune witnessed strong Grade A warehousing demand during H1 CY’23. The city recorded 3.2 msf Grade A warehousing demand during the period. Moreover, Pune’s Grade A warehousing vacancy remained low at 6%. The market also witnessed healthy demand from automotive and manufacturing companies. Chakan continued attracting large warehousing transactions across the city.
Major warehousing transactions in Pune included deals by Chetak Technology and DHL. Chetak Technology leased 5,26,187 sq ft at Bajaj Auto Complex. DHL also leased 3,30,687 sq ft at Power of One Logistics Park. Automotive companies contributed 31% of warehousing occupancy in Pune. Furthermore, Pune’s Grade A warehousing stock reached 24.1 msf in H1 CY’23.
3PL Companies Continue Driving Warehousing Demand
3PL companies remained the largest occupiers in India’s Grade A warehousing market. The sector contributed 28% of total warehousing occupancy during H1 CY’23. E-commerce and retail companies also witnessed strong leasing activity during the period. Manufacturing and automotive sectors further supported warehousing demand across major cities. Therefore, occupier demand remained diversified across sectors.
Bengaluru, Chennai, and Hyderabad also recorded steady warehousing demand in H1 CY’23. Bengaluru witnessed 1.7 msf Grade A warehousing demand during the period. Hyderabad recorded 0.8 msf of warehousing demand across the market. Chennai also continued attracting occupiers from the logistics and manufacturing sectors. Stable vacancy levels supported healthy market conditions across cities.
Grade A Warehousing Market Outlook Remains Strong
India’s Grade A warehousing market delivered a healthy performance in H1 CY’23. Demand remained strong across MMR, Pune, NCR, Bengaluru, and Hyderabad. 3PL, e-commerce, and automotive companies continued driving leasing activity. Moreover, vacancy levels remained stable across major warehousing markets. The sector also witnessed healthy rental growth during the period.
The report by CREDAI National and CRE Matrix highlighted strong momentum in India’s warehousing sector. Grade A warehousing demand crossed 13 msf in H1 CY’23. Major logistics hubs continued attracting strong occupier demand and supply additions. India’s warehousing market may continue witnessing healthy growth in the coming quarters.
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Media Mention
- The Economic Times: Pan India warehousing demand outgrows supply by 1.4x in January-June, rents up 10%
- Business Standard: Monthly avg rent of warehousing space in Delhi-NCR up by 20% in H12023
- Money Control: Grade-A warehousing stock crosses 163 mn sq ft in H1 2023: CREDAI – CRE Matrix Report
- Construction World: Indian Grade-A warehousing soars in H1 2023
- Construction Week: Indian grade-A warehousing stock crosses 163 million square feet in H1 2023: CREDAI-CRE Matrix report
