CARGOCONNECT JULY2024 - Flipbook - Page 86
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Grade A
India Warehousing
Report (9M CY'23)
The warehousing sector of India has achieved a
unique feat – it has surpassed o昀케ce space demand
in 2023 by 3.5% despite being 25-year younger
to the office segment. This can be contributed
to India's consumption being driven across all
income segments, PLI scheme being extended to 14
sectors, coupled with fast-paced improvements in
infrastructure. Demand still continues to surpass
supply in this segment and as a result rentals have
increased by 8.3% in Q3 CY'23 vs same quarter last
year. With the current pace of economic growth,
we believe CY 2023 will end up with 65-70 msf
demand for warehousing space on a pan-India
basis, across all grades.
KEY FINDINGS
* 3.5% across all grades, warehousing space
demand in India has surpassed o昀케ce space
demand by 3.5% over the last 9 months.
* 53% contribution of NCR & Pune to panIndia Grade A/A+ warehousing demand in
昀椀rst 9 months of CY'23.
* Manufacturing sector was the highest
contributor to warehousing demand in 9M
CY'23 – contributing 28% to overall leasing.
* 1.3% decline in Grade A/A+ vacancy levels of
Warehousing across top 6-cities in Q3 CY'23
vs CY'22.
* 8.3% increase in Grade A/A+ market rents
in Q3 CY'23 over the last 9 months on a panIndia basis.
* 65-70 msf predicted pan-India warehousing
demand for full year 2023.
Source: CREDAI | CRE MATRIX
86 | CARGOCONNECT JULY 2024
