As per a report, the warehousing rents in Mumbai, Bangalore, and Delhi-NCR regions have shot up by an average of 7.2% during the last financial year due to the high demand from the third-party logistics, manufacturing and e-commerce sectors.
In Mumbai, the prime spaces for warehousing rent have increased from Rs. 243 per square foot to Rs 265 per square foot which saw annual growth of 9.3%. Similarly in Bangalore, the rise was 6.4%, around Rs. 240 per square foot and in the NCR region, the warehousing rent witnessed a 5.9% hike with a price of Rs 227.40 per square foot.
Mr. Shishir Baijal, CMD of Knight Frank India stated that rent for warehouses in India witnessed a substantial growth signifying resiliency despite supply chain disruptions globally and a slow-down in demand from e-commerce players. He further added that in the second half of 2022, it is analyzed that the 3PL (third party logistics) players and the manufacturing industry are expected to drive space take-up, while e-commerce players might resume expansion plans. The sturdy growth in rents, he said has favoured the landlords and even due to the inflation pressure, this trend is set to sustain growth.