Indian warehousing supply in top 8 cities to grow 13-15%
Indian industrial and warehouse logistics park (IWLP) supply to grow by 13-15 percent YoY in FY2024 in the eight primary markets to around 435 million sq. ft.
This comes with 52 percent share of Grade A capacity, while the incremental absorption is estimated to remain at FY2023 levels of around 39 million sq ft.
The sector continues to witness a sustained demand from the 3PL and automobile sectors, which together accounted for 53% of the total leased area.
Subscribe Now
Additionally, the rapid expansion of new-age sectors like e-commerce and allied services, growing needs of the massive consumption market.
Tushar Bharambe of ICRA: “Over 30% of the current Grade A stock in India is backed by the global operators /investors such as CPPIB, GLP, Blackstone, ESR, Allianz, GIC, and CDC Group etc.
The top five markets namely, Mumbai, NCR, Pune, Chennai, and Kolkata, accounted for 75-78% of total IWLP stock in India as on March 2023, while the overall occupancy remained healthy at around 90%.
Bharambe: “The credit profile of warehousing operators is expected to remain stable, driven by healthy occupancy levels, expected rental escalations resulting in increased rental income and comfortable leverage metrics.
Click Here For More Stories