India’s warehousing demand sees 12% growth, Mumbai leads： report
India’s warehousing transaction volumes in its eight primary markets reached 56.4 million square feet (mn sq ft) in 2024, marking a 12% year-on-year increase from 50.3 mn sq ft in 2023, according to a Knight Frank India report released Wednesday.
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The report notes that these markets have 233 mn sq ft of unutilized land, enough to meet future demand. While rents have risen, vacancy rates stood at 11.5%, keeping rental growth in check. Grade A space accounted for 62% of transactions, with the manufacturing sector driving 39% of demand.
Mumbai led the market with 10.3 mn sq ft transacted in 2024, with third-party logistics (3PL) dominating 43% of the space. The National Capital Region (NCR) followed with 16% of total transactions, while cities like Bengaluru, Kolkata, Ahmedabad, and Chennai saw 25-29% YoY growth. Manufacturing was the key driver in Chennai, Bengaluru, and Ahmedabad, while Kolkata saw significant activity from 3PL and e-commerce companies.
The manufacturing sector continued its momentum, accounting for 39% of total transactions with an 18% YoY growth. Knight Frank India CMD Shishir Baijal emphasized the strong occupier demand, driven by manufacturing expansion and rising rents, signaling India’s warehousing sector as a resilient and high-growth asset.
The sector also saw a surge in private equity investments, reaching USD 1,877 million in 2024, up 136% from the previous year, reflecting growing institutional interest driven by the rise of e-commerce, manufacturing, and supply chain needs.
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