Warehousing stock in top eight cities, which includes, NCR Delhi, Mumbai, Bengaluru, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad added 27 million sq ft in 2020, the report said.

NEW DELHI: The demand for warehousing is expected to grow around 160% to reach 35 million sq ft in 2021, according to a recent report by JLL India.

Warehousing stock in top eight cities, which includes, NCR, Mumbai, Bengaluru, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad added 27 million sq ft in 2020, the report said.

“Industrial spaces witnessed a 13% Y-o-Y growth in total stock in Grade A & B warehousing space in top 8 cities. The overall warehousing space stands at 238 million sq. ft at the end of 2020 compared to 211 million sq. ft in the previous year,” said Yogesh Shevade, head industrial services, JLL India.

3PL has become one of the fastest growing segments in the warehousing space, contributing nearly 35% of total net absorption in 2020, highest among all the other sectors.

Tier II & III cities are gaining strength in warehousing is eminent from the changing pattern of a typical warehouse sizes with some large transaction sizes of 0.3 – 0.4 million sq ft, even in cities such as Coimbatore and Lucknow as outliers and ranging between 0.1 – 0.2 million sq ft in general, as compared to 0.025 – 0.05 million sq ft (25,000 – 50,000 sq ft) a few years back.

According to the report, e-commerce warehousing requirements are penetrating deep inside the cites in the busiest of commercial, retail, and residential areas. Grade A properties have been in demand in 2020 and this demand is anticipated to increase in the coming years due to changing developer preferences and adherence to safety and hygiene norms during COVID-19.

https://realty.economictimes.indiatimes.com/news/retail/warehousing-demand-expected-to-grow-around-160-in-2021-report/81314345