From ET Realty
Third party logistics (3PL) players emerged as the largest demand drivers, leasing close to 2.9 million sq ft of space in 2015, followed by e-commerce companies.
Delhi National Capital Region (NCR) and Mumbai led demand for industrial & warehousing space in 2015, accounting for about 50% of the total space take-up across leading cities. Bangalore and Chennai were among the other leading cities on the radar of industrial & warehousing space occupiers during the year.
Anshuman Magazine, chairman and managing director of CBRE South Asia, feels fresh supply of modern warehousing and industrial parks is anticipated to rise over the next couple of years.
“The government’s ‘Make in India’ campaign is likely to bring about a paradigm shift in the country’s manufacturing sector, encouraging large scale investment inflows. An increasing number of global and domestic firms have also expressed their interest in investing in this space in India,” he said.
While companies such as YCH Logistics, Redington India, Delhivery, DB Schenker and Holisol Logistics led the demand for warehousing space during 2015, domestic e-commerce firms such as Big Basket, Snapdeal, Flipkart, Pepperfry and Firstcry were the other prominent occupiers of space.
During the second half of 2015, more than 3.6 million sq ft of modern warehousing space was leased, an increase of around 5% compared to the same period last year.
Some of the large transactions included about 330,000 sq ft leased by Urban Ladder at Bidadi Industrial Area in Bangalore, 150,000 sq ft leased by Safexpress at Khaintavas, NH-8 and 138,000 sq ft leased by Suzuki Motor Corporation at Farukh Nagar, NH-8 at Gurgaon.
Strong demand levels amid limited availability of good quality land parcels led to rental value appreciation in select micro-markets. While rental values of warehousing locations across Gurgaon, Delhi and Ghaziabad, remained largely range bound, those in Pune and Mumbai also witnessed stable rental values over H1 2015.
The domestic economy witnessed a strong growth momentum in 2015. The government also undertook various measures to boost the real estate sector during the year, such as relaxing foreign direct investment (FDI) norms across construction development, single brand retail trading and e-commerce, among others.