Warehouse leasing sees 24% annual growth rate

NEW DELHI: The overall demand for warehousing remained flat at 51. 3 million sqft in 2022-23 due to strong support from the manufacturing sector and third-party logistics. This also helped counter the decline in demand for warehousing space from the e-commerce sector by 71%.In fact, leasing activities of warehousing witnessed a compound annual growth rate (CAGR) of 24% between 2016-17 and 2022-23. This was revealed in Knight Frank’s ‘India Warehousing Market Report – 2023’. Mumbai, Bengaluru and Kolkata witnessed a historically high volume of transactions at 9. 5 million sqft, 7. 4 million sqft and 5. 1 million sqft — representing a year-on-year (YoY) growth of 10%, 25% and 18%, respectively, in 2022-23. The warehousing space transacted by the e-commerce sector declined 71% YoY to 3. 4 million sqft in 2022-23 due to excess capacity built during Covid.