SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 09 Jul, 2024  

Warehouse.9.Thmb.jpg India to see 13-14 pc growth in warehousing logistics supply in FY25: Report

   Top Stories
» 28 Indian startups raised over $800 mn in funding this week
» GST Council waives interest, penalty on notices to taxpayers under Section 73
» India's innovation ecosystem poised for exponential growth: Industry
» India's innovation ecosystem poised for exponential growth: Industry
» Overseas Indians faith grows in Indian economy with $1 billion deposits in April
IANS | 09 Jul, 2024

As the government focusses on making India a global manufacturing hub, industrial and warehouse logistics supply is projected to grow by 13-14 per cent year-on-year (YoY) in FY25 to nearly 424 million square feet (sq ft), a report showed on Tuesday.

The growth in warehousing space in India's eight major cities is buoyed by strong demand from the e-commerce, manufacturing and logistics sectors.

Grade A warehouses will take up a bigger share of the market, according to the ICRA report.

Moreover, the absorption is estimated to increase to 47 million sq ft in FY25 (90 per cent of incremental supply addition) from 37 million sq ft in FY24, supported by strong consumption-led demand, the report noted.

“Over the last five years, the Grade A warehouse stock in the eight primary markets has grown at a healthy CAGR of 21 per cent to 183 million sq ft in FY24 and is estimated to increase further by 19-20 per cent YoY in FY25.

“Over 50-55 per cent of the current Grade A stock in India is backed by global operators/investors such as CPPIB, GLP, Blackstone, ESR, Allianz, GIC, and the CDC Group, etc,” said Tushar Bharambe, AVP and sector head – Corporate Ratings, ICRA.

The long-term growth prospects for the Grade A warehouses are supported by the growing preference of the tenants for modern, efficient, and ESG-compliant warehouses, he added.

The vacancy in the eight primary markets stood at 10 per cent in FY24 and is likely to remain at a similar level in FY25.

The sector continues to witness a sustained demand from the third-party logistics (3PL) and manufacturing sectors, which together accounted for 65 per cent of the total leased area (as of March 2024) while the share of e-commerce stood at 15 per cent.

Among the eight primary markets, around 42 per cent of the warehousing stock was contributed by Mumbai and Delhi-NCR, while the overall occupancy remained healthy at around 90 per cent.

“ICRA expects the credit profile of the operators to remain stable, driven by healthy occupancy levels, expected rental escalations leading to increased rental income, and comfortable leverage metrics,” said Bharambe.


Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
Will the Budget 2024 be MSME friendly
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter