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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Real Estate

26 Jun 2026

AGM Vijaylaxmi launches Sixty3 W.E. Bizpark

AGM Vijaylaxmi Group has launched Sixty3 W.E. Bizpark, a mixed-use commercial development in Goregaon East, Mumbai. The project includes contemporary office spaces and a high-street retail component designed to support businesses, retailers and professionals.Located along the Western Express Highway, Sixty3 W.E. Bizpark is planned as a G+25-storey commercial tower. It offers office spaces ranging from 545 sq ft to 3,200 sq ft, with a 3.60 metre floor-to-floor height aimed at improving spatial comfort, natural light and operational efficiency.The project features a high-street retail boulevard ..

Real Estate

26 Jun 2026

Manglam Group to Develop Sheraton Hotel in Jaipur

Manglam Group has signed an agreement with Marriott International to develop a Sheraton hotel on the Jaipur–Ajmer Highway in Jaipur. The project will feature 220 keys and is being developed with an investment of around Rs 3.5 billion across more than 300,000 sq ft.The hotel marks Manglam Group’s third collaboration with Marriott International and forms part of its Rs 10 billion hospitality investment roadmap. The agreement was signed by Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts, and Rajeev Menon, President, Asia Pacific excluding Greater China, Marriott Interna..

Infrastructure Urban

26 Jun 2026

India Warehousing Show 2026 opens at YashoBhoomi

India's warehousing, logistics, and supply chain ecosystem came together as the 15th edition of India Warehousing Show (IWS) 2026 opened at YashoBhoomi, India International Convention & Expo Centre (IICC), Dwarka, New Delhi on June 25 (Thursday). Organised by RX India, the three-day event will run from 25-27 June 2026, bringing together policymakers, industry leaders, technology providers, and supply chain professionals under one roof. It also features a two-day knowledge conference that will run alongside the exhibition. Inaugurated by Pankaj Kumar, Joint Secretary - Logistics, DPIIT..