Delhi-NCR Warehousing Rent Up 4% in H1 2023

21 Aug 2023 CW Team

Vestian's Chief Executive Officer, Shrinivas Rao, mentioned that the Indian warehousing and logistics sector was navigating global challenges with a foundation of strong and sustainable fundamentals. He highlighted that multiple large-scale infrastructure projects were in the pipeline across the country to enhance connectivity and decrease transit time.

As per a report by Vestian, across seven major cities, the micro-markets within Delhi-NCR reported the highest average rentals of Rs 22.5 per sq ft per month, whereas it was Rs 21.6 in the preceding year.

Bengaluru closely followed with a rate of Rs 22 per sq ft per month, showcasing the city's significance in the logistics sector. Rent in Bengaluru remained constant.

In Pune, the monthly weighted average rentals remained unchanged at Rs 20.9 per square foot, which was a slight increase from Rs 20.8 during the first half of the previous year.

Hyderabad witnessed a monthly rent of Rs 20.5 per square foot, in comparison to Rs 20.4 per sq ft during the corresponding period of the preceding year.

In Chennai, there was a marginal decrease in the monthly rent, which fell to Rs 19.9 per square foot from Rs 20.

Mumbai experienced a 2 percent growth in monthly rent, reaching Rs 19.7 per sq ft from Rs 19.3.

In Kolkata, the rent remained steady at Rs 18.2 per sq ft per month during the January-June period of the current year.

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According to real estate consultant Vestian, the average monthly rent of warehousing and logistics space in and around the national capital region had risen by 4 percent annually to Rs 22.5 per sq ft in the first half of this year due to increased demand. The leasing of warehousing and logistics space in Delhi-NCR had witnessed a 68 percent increase, reaching 4.7 million sq ft during the January-June period of the current year compared to 2.8 million sq ft in the same period of the previous year. Vestian's Chief Executive Officer, Shrinivas Rao, mentioned that the Indian warehousing and logistics sector was navigating global challenges with a foundation of strong and sustainable fundamentals. He highlighted that multiple large-scale infrastructure projects were in the pipeline across the country to enhance connectivity and decrease transit time. As per a report by Vestian, across seven major cities, the micro-markets within Delhi-NCR reported the highest average rentals of Rs 22.5 per sq ft per month, whereas it was Rs 21.6 in the preceding year. Bengaluru closely followed with a rate of Rs 22 per sq ft per month, showcasing the city's significance in the logistics sector. Rent in Bengaluru remained constant. In Pune, the monthly weighted average rentals remained unchanged at Rs 20.9 per square foot, which was a slight increase from Rs 20.8 during the first half of the previous year. Hyderabad witnessed a monthly rent of Rs 20.5 per square foot, in comparison to Rs 20.4 per sq ft during the corresponding period of the preceding year. In Chennai, there was a marginal decrease in the monthly rent, which fell to Rs 19.9 per square foot from Rs 20. Mumbai experienced a 2 percent growth in monthly rent, reaching Rs 19.7 per sq ft from Rs 19.3. In Kolkata, the rent remained steady at Rs 18.2 per sq ft per month during the January-June period of the current year. Also read: Infosys Inks $1.64 billion deal with Liberty Global Reliance and Partners invest $12M in Caelux's Solar Tech