Warehousing Spaces' Demand In Delhi-NCR Falls 77%: Vestian Report

Demand for warehousing spaces in Delhi and National Capital Region slumped 77% on the year to 1.1 million square feet during the second of the calendar year 2024, Vestian said in its latest warehousing sector review report.

With such a huge fall, Delhi-NCR has emerged as city with the most decline in demand for warehousing spaces compared to other major cities across India, Vestian's latest Warehousing and Logistics Sector review for January-June 2024.

Seven major cities of India witnessed 8% annual growth for such spaces during the first half of 2024. The demand for such spaces rose to 16.6 million square feet from 15.4 million square feet, Vestian said.

Kolkata's requirement for warehousing spaces fell 65% on the year to 0.3 million square feet in January–June from 0.8 million square feet, as per Vestian's Warehousing and Logistics Sector review report.

Similarly, in Bengaluru, the leasing of warehousing spaces declined 19% to 1.4 million square feet, from 1.7 million square feet, the report said.

However, the leasing of spaces in Chennai jumped to 1.5 million square feet, from 0.5 million square feet and in Hyderabad, the absorption of warehousing spaces rose 48% on the year to 1.9 million square feet, from 1.3 million square feet.

Mumbai and Pune together accounted for 63% of the total absorption in the second half.

Leasing of warehousing and logistics spaces in Mumbai rose 80% to 6.8 million square feet, from 3.8 million square feet. In Pune, the absorption of spaces grew 40% to 3.6 million square feet in January-June 2024, from 2.6 million square feet in the corresponding period of the previous year.

According to Vestian, the warehousing and logistics properties received investments worth $1.6 billion in January-June 2024, accounting for 42% of the total institutional investment received in the real estate sector.

(With inputs from PTI.)