India’s warehousing market continued its strong growth during H1 CY2022, according to the latest Grade A India Warehousing Report by CRE Matrix. Demand for Grade A warehouses remained healthy across major cities. E-commerce, 3PL, and retail companies led most leasing transactions during the period. At the same time, developers added fresh supply in key logistics hubs. As a result, the Indian warehousing market maintained strong momentum despite global uncertainty.
Grade A warehouse demand reached 11.4 million sq ft during H1 CY2022. Total Grade A stock across India touched 130.6 million sq ft during the same period. Meanwhile, vacancy levels stayed stable at 7.9% across major markets. Average rentals also increased to ₹23.7 per sq ft per month.
Grade A Warehouse Demand Remains Healthy
India’s warehousing market recorded 5.7 million sq ft of Grade A demand during Q2 CY2022. Grade B and C spaces added another 4.4 million sq ft of leasing activity. Meanwhile, fresh Grade A supply stood at 3.3 million sq ft during the quarter. This trend highlights stable occupier confidence across industrial and logistics markets.
3PL companies remained the biggest demand drivers during Q2 CY2022. The sector contributed 28% of total Grade A leasing activity. E-commerce firms followed closely with a 25% share. Retail, automotive, and manufacturing companies also expanded warehouse operations during the quarter.
Bengaluru and NCR Witness Strong Leasing Momentum
Bengaluru recorded healthy warehouse leasing activity during Q2 CY2022. The city reported 0.4 million sq ft of Grade A demand. Retail companies contributed the largest share of leasing activity in Bengaluru. Vacancy levels also remained low at 3.2%. Average rentals reached ₹23.6 per sq ft per month.
Delhi-NCR also witnessed strong warehouse demand during the quarter. The region recorded 1.9 million sq ft of Grade A leasing activity. 3PL companies dominate most transactions in the market. NCR’s Grade A stock reached 40.8 million sq ft during H1 CY2022. However, vacancy levels remained slightly higher at 10%.
MMR and Pune Continue Industrial Expansion
Mumbai Metropolitan Region remained one of India’s leading warehousing hubs. The city recorded 1.5 million sq ft of Grade A demand during Q2 CY2022. Amazon leased nearly 4.9 lakh sq ft at ESR Bhiwandi 2 Logistics Park. Average rentals in MMR stood at ₹21.5 per sq ft monthly. Vacancy levels also improved to 10.8%.
Pune continued to attract automotive and manufacturing occupiers during the quarter. The city reported 0.9 million sq ft of Grade A warehouse demand. Automotive companies contributed 48% of total leasing activity in Pune. The market also witnessed healthy rental growth across industrial corridors. Vacancy levels further declined to 7%.
Chennai and Hyderabad Record Stable Growth
Chennai’s warehousing market remained stable despite limited fresh supply. The city maintained low vacancy levels of 3.2% during Q2 CY2022. Electrical and electronics companies led most warehouse leasing activity. Average rentals also increased to ₹28.2 per sq ft per month.
Hyderabad emerged as another fast-growing warehousing destination in India. The city recorded 0.8 million sq ft of Grade A demand during the quarter. Amazon completed one of the largest warehouse deals in Hyderabad. Grade A stock in the city reached 8.5 million sq ft. Meanwhile, average rentals stood at ₹18.9 per sq ft per month.
India’s warehousing market Outlook Remains Positive
The Indian warehousing market continues to witness strong occupier demand across major cities. 3PL, e-commerce, retail, and manufacturing companies remain key growth drivers. Developers are also expanding Grade A supply in important logistics corridors. At the same time, vacancy levels remain under control in most markets.
India’s growing consumption and supply chain expansion will support future demand. Large occupiers continue to prefer modern Grade A warehouse facilities. As a result, the warehousing sector is expected to maintain strong growth momentum in the coming quarters.
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Media Mentions
The Economic Times: E-commerce demand for warehousing space down
