The India warehousing market recorded transactions of 23 million square feet (sqft), with Bengaluru witnessing transactions of 3.27 million sqft in H1 FY 2024, marking a 14 per cent contribution of warehousing transacted volumes across eight markets in the country, according to a report by Knight Frank India.  

Further, 53 per cent of these transactions occurred in Grade A spaces during the current analysis period. Transaction activity was well distributed across markets, with Pune accounting for 19 per cent of the total warehousing volume, driven primarily by the automotive industry. Mumbai represented 16 per cent of the total warehousing area transacted, with the 3PL sector being a significant contributor. 

Warehousing Rent 

Pune is the most expensive warehousing rental market in the country (amongst the reviewed eight cities), with average rents for grade A warehouses at ₹25.9/sqft/month. It is followed by Kolkata with a rental rate of ₹23.6/sqft/month and Mumbai at ₹23.4/sqft/month. The average rent in Bengaluru grew marginally by 1 per cent in the April–September 2023 period and was at Rs. 21.8/ sqft/month as of September 31, 2023. 

While occupier traction seems to have taken a pause in the current analysis period, rent growth across markets has been relatively healthy in H1 FY 2024 (30th September 2023) compared to levels existing at the end of FY 2023 (31st March 2023). 

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, with the 3PL sector playing a pivotal role in the market and the manufacturing sector exhibiting substantial growth over the past two years, the overall demand from occupiers has remained remarkably resilient, even considering the e-commerce sector’s cautious approach during this period.  

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