Indian Grade-A warehousing soars in H1 2023

22 Sep 2023 CW Team

This nationwide study, examining key markets such as Delhi-NCR, MMR, Pune, Bangalore, Chennai, and Hyderabad, reveals that MMR and NCR contributed over 49% of the new warehousing stock in H1 2023, while nearly 54% of sectoral demand came from organisations in MMR and Pune.

Rental costs have surged by 10% across India, with Delhi NCR and Chennai experiencing the most significant increases (almost 20% and 20.8%, respectively) by the end of H1 2023. Leading industries leasing warehousing spaces include players in E-commerce, Third Party Logistics, and Retail, among others.

Boman Irani, President of CREDAI, underscores the strength of Indian Real Estate fundamentals, driven by macro and microeconomic growth. He predicts a continued upward trajectory in Grade A warehousing demand and supply, thanks to the growth of E-commerce, Retail, and the influx of global companies into India.

Abhishek Gupta, CEO of CRE Matrix, notes that warehousing remains the only real estate segment where demand has consistently exceeded supply for the past seven years. With vacancy rates at an all-time low and rentals at an all-time high, Gupta anticipates a significant increase in Grade A warehousing stock in India, possibly reaching 500 million square feet over the next five years. Average rentals have risen from INR 20 per square foot to INR 28 per square foot in 2023, and the trend toward in-city warehouses for faster delivery may even see rentals surpass office rentals in some cases.

The Indian Grade-A warehousing sector has witnessed remarkable growth, surpassing 163 million square feet in the first half of 2023, driven by rapid industrial expansion and a thriving real estate segment. A joint report by CREDAI and CRE Matrix reveals that this dynamic sector experienced a demand surge, outpacing supply by 1.4 times. In absolute figures, H1 Grade A warehousing demand reached 13 million square feet, while supply stood at 9.4 million square feet, underscoring robust industry fundamentals and the expansion of specialised sectors. The report also highlights a national vacancy rate of just 8.8% at the end of H1 2023, down from 10.5% the previous year. This nationwide study, examining key markets such as Delhi-NCR, MMR, Pune, Bangalore, Chennai, and Hyderabad, reveals that MMR and NCR contributed over 49% of the new warehousing stock in H1 2023, while nearly 54% of sectoral demand came from organisations in MMR and Pune. Rental costs have surged by 10% across India, with Delhi NCR and Chennai experiencing the most significant increases (almost 20% and 20.8%, respectively) by the end of H1 2023. Leading industries leasing warehousing spaces include players in E-commerce, Third Party Logistics, and Retail, among others. Boman Irani, President of CREDAI, underscores the strength of Indian Real Estate fundamentals, driven by macro and microeconomic growth. He predicts a continued upward trajectory in Grade A warehousing demand and supply, thanks to the growth of E-commerce, Retail, and the influx of global companies into India. Abhishek Gupta, CEO of CRE Matrix, notes that warehousing remains the only real estate segment where demand has consistently exceeded supply for the past seven years. With vacancy rates at an all-time low and rentals at an all-time high, Gupta anticipates a significant increase in Grade A warehousing stock in India, possibly reaching 500 million square feet over the next five years. Average rentals have risen from INR 20 per square foot to INR 28 per square foot in 2023, and the trend toward in-city warehouses for faster delivery may even see rentals surpass office rentals in some cases.

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..