E-commerce boom to boost warehousing in India

09 Jul 2021 CW Team

According to Knight Frank, India's e-commerce boom will more than double the amount of warehousing space required in the next five years.

According to a report released Tuesday by the research firm, annual warehousing transactions in the top eight Indian cities will increase to 76.2 million square feet (sq ft) by March 2026, up from 31.7 million sq ft in 2021. The expected increase comes after a drop in the previous year due to the pandemic.

According to Knight Frank, e-commerce only accounted for 4.7% of total Indian retail in 2019, compared to 15.9% in China and 19.2% in the United Kingdom.

E-commerce will take up 165% more space in Indian warehouses over the next five years, while third-party logistics and other sector companies will take up 56% and 43%, respectively, according to Knight Frank.

In the 12 months ending in March, warehousing transactions in the top eight Indian cities fell by 23% to 31.7 million sq ft, compared to the previous year. Rent growth was also affected due to Covid-induced lockdowns.

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Also read: Taking Stock of Warehousing

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