ICRA Ratings predict growth in warehousing facilities in eight major cities of the country. It said that the supply of industrial and warehouse Logistics Park will increase by 13 to 15 % in the current financial year. At present, 435 million square feet of warehouses are coming up in eight major cities of the country. Half of these warehouses will come under Grade A. However, the consumption of new accommodation will remain at 39 million square feet. It explained that the warehousing industry is witnessing steady demand from the third party logistics (transportation) and automobile sectors, with these sectors accounting for 53 % of the total warehousing leased area by March 2023. In addition to this, the rapid expansion of e-commerce and related services sectors is also increasing the demand for warehouses.
Growth in warehousing facilities
ICRA ratings expects Grade A warehouse accommodation to grow by 17 % to 195 million square feet in eight major cities across the country. By March 2023 it will be 167 million square feet. It said that by March next year, 28 million square feet of new accommodation in the Grade A segment will be available. In all, 30 % of the existing Grade A warehouse accommodation is occupied by international operators, investors such as CPPIB, GLP, Blackstone, ESR, Allianz, GIC, CDP Group. In the long run, the ICRA Ratings report said that there are better prospects for the growth of Grade-A warehouse accommodation. Mumbai, Delhi, Pune, Chennai and Kolkata are the top markets for warehousing. They account for 75-78 % of the share of the total accommodation.
