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.
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.
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