According to a recent report by Knight Frank, India is likely to spearhead the warehousing sector in the Asia Pacific region by next year by creating 30 million square feet of space. The cities that are highly expected to lead warehousing space are Delhi-NCR, Mumbai, and Bangalore. These three cities will also be leading the rental growth in 2023.
The reason for the increase in warehouse occupation and rental in 2023 is due to increased demand from the manufacturing sector and e-commerce businesses that are reviving and resuming taking space across India. As per the report from Knight Frank, Bengaluru and Delhi-NCR will see the maximum hike in warehousing rentals from 5 to 7 percent, while Mumbai will witness only 4 to 6% in 2023. The same report also mentioned that Australia will see rental growth at 12% in 2023.
As per the statement issued by Mr. Shishir Baijal, chairman and managing director of Knight Frank India, market fundamentals will render a generally balanced logistics market in Asia-Pacific, with rental growth set to moderate compared to the past two years.