Hey folks, let’s talk about some exciting developments in India’s warehousing and logistics sector! In the first half of 2024, Mumbai and Pune were the stars of the show, accounting for a whopping 63% of total space absorption. Mumbai’s share alone jumped from 25% in H1 2023 to 41% in H1 2024, showing some serious growth in demand for grade-A warehouses in key areas like Bhiwandi, Panvel, Uran, Taloja, and Ambernath.
Overall, the market saw a total absorption of 16.6 million square feet in H1 2024, an 8% increase from the same period last year. However, this number was down 26% from the second half of 2023, mainly due to a drop in absorption rates in the National Capital Region (NCR). NCR’s share fell from 31% to just 6%, reflecting a massive 74% decline in space absorption.
On the flip side, Chennai saw a whopping 191% increase in absorption, reaching 1.5 million square feet in H1 2024. Other southern cities like Bengaluru and Hyderabad also played a significant role, accounting for 29% of total absorption, with Hyderabad showing a solid 48% increase year-on-year.
When it comes to rentals, the weighted average declined slightly by 3% to INR 21.6/sq ft/month in H1 2024 compared to the same period last year. Bengaluru saw the highest drop at 8%, while Hyderabad witnessed a 7% decrease. On the other hand, Pune saw a significant 30% increase in rentals, reaching INR 27.1/sq ft/month, followed by Chennai with a 22% uptick.
So there you have it, folks! Mumbai and Pune are dominating the warehousing and logistics scene in India, with some exciting growth happening in other cities as well. Stay tuned for more updates!
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