{"id":2974,"date":"2022-08-30T12:37:00","date_gmt":"2022-08-30T07:07:00","guid":{"rendered":"https:\/\/www.crematrix.com\/blog\/?p=2974"},"modified":"2026-05-09T12:52:59","modified_gmt":"2026-05-09T07:22:59","slug":"indias-warehousing-market-maintains-strong-growth-momentum-in-h1-cy2022","status":"publish","type":"post","link":"https:\/\/www.crematrix.com\/blog\/indias-warehousing-market-maintains-strong-growth-momentum-in-h1-cy2022\/","title":{"rendered":"India&#8217;s warehousing market Maintains Strong Growth Momentum in H1 CY2022"},"content":{"rendered":"\n<p>India\u2019s warehousing market continued its strong growth during H1 CY2022, according to the latest Grade A India Warehousing Report by <a href=\"http:\/\/crematrix.com\">CRE Matrix<\/a>. 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.<\/p>\n\n\n\n<p>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 \u20b923.7 per sq ft per month.<\/p>\n\n\n\n<h2><strong>Grade A Warehouse Demand Remains Healthy<\/strong><\/h2>\n\n\n\n<p> India&#8217;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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<h2><strong>Bengaluru and NCR Witness Strong Leasing Momentum<\/strong><\/h2>\n\n\n\n<p>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 \u20b923.6 per sq ft per month.<\/p>\n\n\n\n<p>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\u2019s Grade A stock reached 40.8 million sq ft during H1 CY2022. However, vacancy levels remained slightly higher at 10%.<\/p>\n\n\n\n<h2><strong>MMR and Pune Continue Industrial Expansion<\/strong><\/h2>\n\n\n\n<p>Mumbai Metropolitan Region remained one of India\u2019s 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 \u20b921.5 per sq ft monthly. Vacancy levels also improved to 10.8%.<\/p>\n\n\n\n<p>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%.<\/p>\n\n\n\n<h2><strong>Chennai and Hyderabad Record Stable Growth<\/strong><\/h2>\n\n\n\n<p>Chennai\u2019s 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 \u20b928.2 per sq ft per month.<\/p>\n\n\n\n<p>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 \u20b918.9 per sq ft per month.<\/p>\n\n\n\n<h2><strong>India&#8217;s warehousing market<\/strong> <strong>Outlook Remains Positive<\/strong><\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>India\u2019s 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.<\/p>\n\n\n\n<p>Elevate your decisions in real estate as a developer or broker with CRE Matrix\u2018s data-driven insights. <a href=\"https:\/\/www.crematrix.com\/#schedule_demo\">Book a demo now<\/a>!<\/p>\n\n\n\n<h2><strong>Media Mentions<\/strong><\/h2>\n\n\n\n<p><strong>The Economic Times:<\/strong> <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/services\/property-\/-cstruction\/ecommerce-demand-for-warehousing-space-down\/articleshow\/94461175.cms?from=mdr\">E-commerce demand for warehousing space down<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s 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&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[185],"tags":[5,6,7,4],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>India&#039;s warehousing market Growth, Demand &amp; Rentals H1 CY2022<\/title>\n<meta name=\"description\" content=\"India&#039;s warehousing market saw strong Grade A leasing in H1 CY2022. 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