Hyderabad, March 04, 2018: Knight Frank India launches the third edition of its flagship India Warehousing Market Report 2018. The report unravels the present scenario of the Indian logistics sector along with providing a definitive view on the country’s top warehousing markets which include Mumbai, NCR, Bengaluru, Chennai, Pune, Hyderabad and Ahmedabad.
- The annual transaction volumes of warehousing space in Hyderabad rose to 2.05 mn sq. ft in 2017
- The transaction volumes recorded a significant 68% growth over 2016 courtesy strong warehousing leasing by pharmaceutical, e-commerce and logistics sectors.
- Large occupiers like Flipkart, DHL, Delhivery, Nestle to name a few have committed huge spaces
- The Equity IRR achievable for a development project at the Jeedimetla – Medchalcluster stood at up to 12%
- Most of the warehousing activity is concentrated in the Jeedimetla-Medchal cluster
The table below depicts Equity IRR for a development project
Speaking on the report findings, Balbirsingh Khalsa, National Director – Industrial and Asset Services, said, “Post GST the Hyderabad market recorded a significant 68% growth as companies who were till now in a wait and watch mode have now got into execution mode. For the first time we are witnessing consolidation and expansion of warehousing space. This increase in demand from sectors such as e-commerce, 3PLs, Consumer Durables, FMCG and Manufacturing to name a few coupled with a requirement for larger sized warehouses has opened up the field for more and more organised players which has led to a demand. We expect the trend to continue and get better in the days to come.”
Dr. Samantak Das, Chief Economist & National Director – Research, said, “With so much happening around in terms of the Make in India programme, One Nation One Tax – GST, traction on industrial corridors and the infrastructure status to the logistics sector, warehousing as a real estate constituent would be a real beneficiary in the times to come. Across the top 8 cities in the country, we have seen transaction volumes jump by 85% YoY to 25.7 mnsqft in 2017. Investors had started taking cognizance of the opportunities in this sector much before the government could implement the reforms. The past few years have witnessed massive participation from institutional investors. Some of them have purchased ready assets, whereas others are investing in a mix of ready and Greenfield assets.”
Corporate Comm India(CCI Newswire)