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.
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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