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<\/a><\/p>\n3PL players biggest demand driver with a share of 35% in total transaction<\/p>\n
Mumbai, 21st September 2022: `Knight Frank India, an international property consultancy, in their latest report – \u2018India Warehousing Market Report \u2013 2022\u2019, cited that Chennai recorded warehousing transaction volume of 5.1 mn sq ft in FY 2022, a substantial growth of 44% YoY compared to 3.53 mn sq ft in FY 2021.<\/p>\n
Chennai, due to its proximity to the sea, became a desirable base for heavy industries-. Apart from serving as a home base to Automobile industry; textile production and manufacturers for heavy industries are among the other major industries driving the industrial and warehousing market in city.<\/p>\n
WAREHOUSING TRANSACTIONS ACROSS TOP 8 INDIAN CITIES<\/p>\n
FY 2022 % Change CAGR<\/p>\n
City in mn sq ft FY 2022 YoY FY 2017-22<\/p>\n
NCR 9.1 32% 26%<\/p>\n
Mumbai 8.6 48% 41%<\/p>\n
Pune 7.5 166% 30%<\/p>\n
Bangalore 5.9 38% 36%<\/p>\n
Hyderabad 5.4 128% 35%<\/p>\n
Ahmedabad 5.3 81% 25%<\/p>\n
Chennai 5.1 44% 22%<\/p>\n
Kolkata 4.3 41% 26%<\/p>\n
Total 51.3 62% 30%<\/p>\n
Source: Knight Frank Research<\/p>\n
Source: Knight Frank Research<\/p>\n
With respect to industry-split of transaction volume, manufacturing sectors (automobile, pharmaceutical, etc.) except FMCG and FMCD constituted to the biggest demand driver for warehouses. The sector accounted for 38% share of the region\u2019s warehousing transactions, followed by Third Party Logistics (3PL) players with 35% share in FY 2022. E-commerce and retail players have been a recent addition to this list of warehousing demand drivers in the city. The retail sector witnessed significant increase in share of transaction volume from 1% in FY 2021 to 6% in FY 2022.<\/p>\n
INDUSTRY-SPLIT OF TRANSACTION VOLUME<\/p>\n
Source: Knight Frank Research<\/p>\n
Notes:<\/p>\n
Warehousing transactions data includes light manufacturing\/assembling<\/p>\n
Other Sectors \u2013 These include all manufacturing sectors (automobile, pharmaceutical, etc.) except FMCG and FMCD<\/p>\n
Miscellaneous \u2013 These include services such as telecom, real estate, document management, agricultural warehousing and publishing<\/p>\n
With respect to cluster split of transactions, the Sriperumbudur-Oragadam area dominated with the highest share of warehousing transactions. The region accounted for 69% of the total transacted volume during FY 2022. This cluster, which is well-known for manufacturing also serves as the main hub for the automotive and related industries.<\/p>\n
Source: Knight Frank Research<\/p>\n
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, The high growth rate of organised warehousing sector in India is a result of its rising GDP and consumerism. With warehouse leasing in India surpassing the pre-pandemic level, the sector is poised to take a quantum leap to match its more mature peers around the world. This will be supported by the ever-increasing institutional interest in owning, developing, and operating warehouse assets ensuring professional expertise to direct the course of this growing market as it matures. In terms of investment, the warehousing sector has received private equity of US$ 1.2 Bn in H1 2022, as against US$ 1.3 Bn that the sector received in the entire year of 2021, adequately demonstrating the confidence global and Indian investors have on the sector\u2019s future.\u201d<\/p>\n
Shishir further added, \u201cGovernment\u2019s push towards development of infrastructure and India\u2019s new Logistics Policy will help in the surge. With the strong demand recorded in the secondary markets, the warehousing momentum is gaining shape even beyond the top 8 markets in the country and the development of Multi Modal Logistics Parks will further create more warehousing zones covering the geographic expanse of the country. \u201d<\/p>\n
CHENNAI: LAND RATE AND RENTS<\/p>\n
Both land rates and rentals witnessed appreciation in select pockets across the three major clusters in FY 2022. Driven by the increase in warehousing demand from e-commerce and 3PL companies, Grade A warehouse rents appreciated marginally across most micro-markets in the NH 16 \/ GNT Road \u2013 Periyapalayam cluster (North Chennai). Steady manufacturing activity contributed to a marginal increase in warehouse rents in both Sriperumbudur \u2013 Oragadam and GST Road \u2013 Maraimalai Nagar clusters. Increased warehousing traction also attributed to increase in land rates in Sriperumbudur, Irungattukottai, Red Hills and Karanodai belts.<\/p>\n
In terms of rental value, rates for Grade A warehousing space in Oragadam loaction in the Sriperumbudur \u2013 Oragadam cluster recorded the rents in the range of INR 248 – 280 sq m\/month, followed by Irungattukottai which recorded rent in the range of INR 237 – 269 \/sq m\/month.<\/p>\n
Warehouse cluster Location Land rate Grade A Grade B<\/p>\n
(INR mn.\/acre) Rent in INR\/sq. ft.\/month Rent in INR\/sq. ft.\/month<\/p>\n
Sriperumbudur \u2013 Oragadam cluster Sriperumbudur 20 \u2013 25 22 – 25 21 – 24<\/p>\n
Oragadam 20 \u2013 30 23 – 26 21 – 24<\/p>\n
Mappedu 10 \u2013 15 16 – 19 15 – 17<\/p>\n
Mannur 17 \u2013 23 19 – 22 17 – 19<\/p>\n
Irungattukottai 40 \u2013 45 22 – 25 20 – 23<\/p>\n
Pollivakkam 15 \u2013 18 19 – 21 18 – 21<\/p>\n
NH 16 \/ GNT Road \u2013 Periyapalayam cluster (North Chennai) Cholavaram 13 \u2013 16 18 – 22 16 – 20<\/p>\n
Red Hills 15 \u2013 17 20 – 23 18 – 22<\/p>\n
Karanodai 17 \u2013 22 20 – 23 18 – 22<\/p>\n
Madhavaram 80-100 21 – 24 19 – 22<\/p>\n
Puzhal 60-80 20 – 24 19 – 22<\/p>\n
Periyapalayam 13 \u2013 16 16 – 18 16 – 18<\/p>\n
GST Road – Maraimalai Nagar cluster In and around Mahindra World City 25 \u2013 27 23 – 26 23 – 26<\/p>\n
Maraimalai Nagar 40 \u2013 45 22 – 26 22 – 24<\/p>\n
Source: Knight Frank Research<\/p>\n
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Chennai\u2019s warehousing transaction volume increased by 44% YoY to 5.1 mn sq ft in FY 2022: Knight Frank India 3PL players biggest demand driver with a share of 35% in total transaction Mumbai, 21st September 2022: `Knight Frank India, an international property consultancy, in their latest report – \u2018India Warehousing Market Report \u2013 2022\u2019, cited […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32,10,30,22,11,27,34,28],"tags":[],"class_list":["post-22791","post","type-post","status-publish","format-standard","hentry","category-business","category-corporate","category-finance","category-international","category-new-hopes","category-news","category-technology","category-value-added-services"],"_links":{"self":[{"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/posts\/22791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22791"}],"version-history":[{"count":1,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/posts\/22791\/revisions"}],"predecessor-version":[{"id":22792,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=\/wp\/v2\/posts\/22791\/revisions\/22792"}],"wp:attachment":[{"href":"https:\/\/www.faceinews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.faceinews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}