Savills predicts 20% growth for Indian warehousing sector in 2020
January 24, 2020: Indian warehouse absorption in 2019 stood at 34 million square feet while vacancy less than 10 percent, according to a report released by the international property consulting firm Savills on India
The research firm predicted a 20 percent growth driven by manufacturing sector leasing and 3PL " E-commerce increasing their needs in Tier-II cities.
January 24, 2020: Indian warehouse absorption in 2019 stood at 34 million square feet while vacancy less than 10 percent, according to a report released by the international property consulting firm Savills on India's industrial, warehousing and logistics sector.
The research firm predicted a 20 percent growth driven by manufacturing sector leasing and 3PL & E-commerce increasing their needs in Tier-II cities.
The reports notes:
Rental stock
2019 saw a major push on specifications and compliance from occupiers with rents moving up by 5% to 10%. The outlook will focus on Grade A speculative stock which is compliant & improved specifications from developers.
Land
2019 saw 3500 acres being transacted with the majority being outright purchase followed by JVs and JDs apart from few marque assets.
Sectoral overview
The manufacturing sector absorbed around 6 million square feet. E-commerce and 3PL leased around 20 million square feet. SMEs & electronic components manufacturers and the auto sector leased significantly in few Indian cities.
Savills India
Savills in India is an advisor offering commercial advisory & transactions, project management, capital markets, valuations & professional services, research & consulting, industrial & logistics, and residential services. Savills began its India operations in early 2016. With offices in Bengaluru, Mumbai, Delhi NCR, Chennai and Pune; and Savills India also serviced clients in Hyderabad, Kolkata, Chandigarh, Guwahati, Bhubaneswar, Vadodara and Indore.
