The annual warehousing transactions in the top eight cities will grow at a compound annual growth rate or CAGR of 19 per cent to 76.2 million square feet by fiscal 2025-26, compared to 31.7 million square feet in fiscal 2020-21, according to leading real estate consultant Knight Frank. The third-party logistics and other sector firms are expected to take up 56 per cent - around 83 million square feet, and 43 per cent - 53 million square feet more space respectively, over the same period of time.
As per projections for the next five years, the e-commerce segment is expected to take up 98 million square feet, registering an increase of 165 per cent from the financial year 2016-17 to fiscal 2020-21, according to Knight Frank's latest research report titled India Warehousing Report 2021.
In the top eight cities- which include the four metro cities - Delhi, Mumbai, Chennai, and Kolkata, the total land committed to the warehousing development is 22,488 acres which is likely to translate to the buildable potential of up to 531 square feet, according to the report.
The existing warehousing stock already accounts for 329 million square feet on the committed land, leaving around 202 million square feet of the potential warehousing space which can be developed in the land parcels. The warehousing space per capita in the country is much lower than in the developed economies.
In the preceding fiscal 2020-21, the warehousing transactions in the top eight cities registered a decline of 23 per cent year-on-year to 31.7 million square feet. The property consultant states that the decline can be attributed to the disruption caused by the COVID-19 pandemic and the induced lockdowns that affected the economic activity and impacted occupier decisions.
Chennai was the only city to register a growth of four per cent year-on-year to 3.5 million square feet in fiscal 2021, compared to 3.4 million square feet in fiscal 2020. Ahmedabad and Pune were the worst-hit markets registering a decline of 42 per cent year-on-year each.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
