Knight Frank India’s report titled ‘India Warehousing Market Report – H1 FY 2024’ cited that Pune witnessed the highest warehousing transactions in the country (amongst the eight warehousing markets) with 4.26 mn sq ft in H1 FY24. The city accounted for 19 per cent of the total warehousing volume, driven primarily by the automotive industry.
The city is cited as the most expensive warehousing rental market with a rate of ₹25.9/sq ft/month. Pune also witnessed the highest rental growth of four per cent during the six month period of 31st March 2023 to 30th September 2023.
According to Knight Frank’s report warehouse leasing or transactions across primary eight markets of India was recorded at ~23 mn sq ft in H1 FY24 (April – September 2023). About 53 per cent of these transactions occurred in Grade A spaces during the current analysis period.
Transaction activity was well distributed across markets. Pune, the leading market, accounted for 19 per cent of the total warehousing volume, driven primarily by the automotive industry. Mumbai was the second most prolific market, representing 16 per cent of the total warehousing area transacted during the period, with the 3PL sector as 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/sq ft/month. Followed by Kolkata with rental rate of ₹23.6/sq ft/month and Mumbai at ₹23.4/sq ft/month.
While occupier traction seems to have taken a pause in the current analysis period, rent growth across markets has been relatively healthy in H1 FY24 (30th September 2023) compared to levels existing at the end of FY23 (31st March 2023). Pune and Chennai at four per cent and Ahmedabad with a three per cent growth in six months were markets with the most growth in H1 FY24.