The warehousing leasing business has seen unprecedented buoyancy in the recent years. According to a recently released report by CBRE titled ‘Online Retail Driving Realty – Elevating the E-commerce Game’, warehouse leasing capacity in seven major cities in India grew by a staggering 45 % in 2018 crossing 25 million square feet mark. According to the report, the rapid expansion has been primarily driven by the demand from the fast growing e-commerce business and the momentum is likely to ensure the warehouse leasing capacity touching 60 million square feet mark by 2020 end.
E-commerce alone accounted for 23% increase in seven major cities – Delhi-NCR, Mumbai, Chennai, Kolkata, Hyderabad, Pune and Bengaluru. The report also underlines a modest spike between 10-12 percent in warehouse space rentals.
“The sector saw unprecedented growth and we expect supply to touch almost 60 million sq ft by 2020-end. Innovative technologies, coupled with viable government reforms such as GST and other global collaborations will further push the envelope of development for the Indian logistics sector. Given the dynamics at play, demand and supply are both poised to burgeon in the coming years,” Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said.