Leverage Intelligence

Grade A
India Warehousing
Report
9M CY’23 Jan 2024
Key Findings

The warehousing sector of India has achieved a unique feat – it has surpassed office space demand in 2023
by 3.5% despite being 25-years younger to the office segment. This can be attributed to India’s consumption
being driven across all income segments, PLI scheme being extended to 14 sectors, coupled with fast-paced
improvements in infrastructure. Demand still continues to surpass supply in this segment and as a result
rentals have increased by 8.3% in Q3 CY’23 vs same quarter last year. With the current pace of economic
growth, we believe CY 2023 will end up with 65 - 70 msf demand for warehousing space on a pan-India
basis, across all grades.

1.3%
3.5% Decline in Grade A/A+ vacancy
levels of Warehousing across top
6-cities in Q3 CY’23 vs Q3 CY’22
Across all grades, warehousing
space demand in India has
surpassed office space demand
by 3.5% over the last 9 months.

8.3%
Increase in Grade A/A+ market rents

53% in Q3 CY’23 over the last 9 months on

a Pan-India basis.
Contribution of NCR & Pune to Pan-
India Grade A/A+ warehousing
demand in first 9 Months of CY’23.

65-70 msf
Predicted pan-India warehousing
Manufacturing demand for full year 2023
Sector was the highest contributor
to warehousing demand in 9M CY’23 –
contributing 28% to overall leasing

2
Pan India
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 19.6

30
24.8 26.7
9M CY’23 Demand (msf) 25.1
22.5 22.5

Wt. Avg. Rentals (INR / sqft / month)

20.8 21.4
20.2 25.1
24
9M CY’22 Demand (msf) 28.7 20
21.7 22.5 23.2
20.5 21.1

Current Grade A Stock (msf) 187.0

10

Current Vacancy 8.8%

Current Passing Rent * 0

(₹/sqft/month) 25.1
40.0 25%
22.8%
Current Market Rent ^ 26.7 35.0

37.9
(₹/sqft/month)

36.8
18.0% 20%
30.0
19.0%
25.0 15%
14.0%
Mn.sq.ft.

24.6

25.1
City-wise Highlights
24.1
20.0

23.5
26.6
19.7

19.6
11.9% 10%
15.0
17.1

9.9%

15.7
8.8%

NCR & Pune

10.0
5%
10.3
10.2

5.0
8.3

Contributed 0.0 0%
CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23

Note

53 %
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
TO 9M CY’23 Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
DEMAND particular quarter

NCR & Pune

Contributed
3.5% 1.3%
57
49 % TO 9M CY’23
SUPPLY
9M CY’23 Warehousing
Demand exceeded
Vacancy
Q3 CY’23 vs Q3 CY’22
9M CY’23 Office
Demand

Sector Trending
29% 13% 14% 10% 19% 2% 5% 8%

3PL E-Commerce Retail Automotive Manufacturing Electrical/Electronics Pharma/Life Sciences Others

Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23

Delhi-NCR
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 5.7

30

6.5 26.7
9M CY’23 Demand (msf)
22.9 22.8 23.3

Wt. Avg. Rentals (INR / sqft / month)

21.3 21.1
20.4
24.2
9M CY’22 Demand (msf) 8.6 20
22.3 21.6 23
20.5 21.2
19.7

Current Grade A Stock (msf) 57.5

10

Current Vacancy 9.9%

Current Passing Rent * 0

(₹/sqft/month) 24.2
15.0 18%
Current Market Rent ^ 16.2%
26.7 12.4% 16%
(₹/sqft/month)
13.3%

13.3
12.9% 14%
11.5%

11.6
10.0 12%
9.9% 9.9%
Mn.sq.ft.

9.9
10%

8.0
8%
7.7

7.4

6.5
5.0 6%
6.2

5.7
4.8
4%
4.6

4.8%
2%
2.8
1.4

Supply Growth
1.8

0.0 0%
Q3 CY’23 vs CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23

Q3 CY’22
Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter
Major Warehouse Transactions

11.9%
Growth in Market
Havells,
Rent
Last 12 months Indospace Industrial & ₹21.0
Logistics Park (Badli)
3,36,187 sqft

Goodworth Electronics,
Plot No. 66 (Ecotech II) ₹24.0
1,80,000 sqft
Sector Occupancy
1% Zet Town India,
28% 16% 14% 9% 15% 9% 8% Plot No. B-4 (Noida) ₹25.4
1,38,000 sqft

DHL,
3PL E-Commerce

Manufacturing
Retail

Electrical/Electronics
Automotive
IndoSpace Logistics Park ₹22.1
Luhari I & II
Electrical/Electronics Others 1,37,135 sqft
Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 3

MMR
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 4.3

40

9M CY’23 Demand (msf) 6.3 32.7 33.6

Wt. Avg. Rentals (INR / sqft / month)

26.7 28.9
30 23.6 25.5
25.3
9M CY’22 Demand (msf) 4.8 29.2 31
27.3
25.6 26.4
20 24.2
21.6
Current Grade A Stock (msf) 35.5

10
Current Vacancy 9.5%

Current Passing Rent * 0

(₹/sqft/month) 31
25%
Current Market Rent ^ 33.6
(₹/sqft/month) 20.8% 20.5%
19.3% 20%
18.9%

6.4

6.3
6.0
14.7%
6.8

5.8
5.0 15%

5.4
Mn.sq.ft.

12.4%

4.3
4.2

10%

3.5
9.5%

3.4
3.1
2.6

5%
1.8

5.8%
0.8

Growth in Passing 0.0 0%

Rent CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23

Last 12 months
Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter
Rentals are based on Carpet Area in MMR

3.0%
Vacancy
Q3 CY’23 vs
Major Warehouse Transactions

Q3 CY’22 Skechers,

₹33.1
Palava Industrial and
Logistics Park 2
6,79,418 sqft

Yusen Logistics,
BGR Logistics Park
1,56,248 sqft
₹20.3
Sector Occupancy
2%
2% Endress+Hauser,
49% 13% 15% 8%4% 7% RK Logi World ₹20.8
52,577 sqft

M-I Enterprises India,

₹35.0
3PL E-Commerce Retail Automotive
ESR Lodha Industrial &
Manufacturing Electrical/Electronics
Logistics Park
Electrical/Electronics Others 45,692 sqft
Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 4

Pune
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 5.5

40

9M CY’23 Demand (msf) 6.7 29.5

28.4

Wt. Avg. Rentals (INR / sqft / month)

28.4 28.1 27.2
30 27.3 27.8
9M CY’22 Demand (msf) 6.8
27.8 27.2
26 26.9
20 24.1 23.8
Current Grade A Stock (msf) 29.4 22.5

10
Current Vacancy 7.5%

Current Passing Rent * 0

(₹/sqft/month) 27.8
10.0 35%
Current Market Rent ^ 26.9
(₹/sqft/month) 30%

8.9
25%

19.6% 20.9%

6.8

6.7
Mn.sq.ft.

20%
5.0 14.3%

5.5
11.7% 15%

5.0
17.3%
10%
3.4
3.3

3.3
3.1

9.4% 7.5%
2.6

5%

24.4%
1.9

1.8
1.7

Absorption Growth
1.2

0.0 0%
Last 3 years CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23
average quarterly
vs Q3 CY’23 Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter
Major Warehouse Transactions

Supply Growth

1.8X Q3 CY’23 vs
Q3 CY’22
Varroc Polymers,
Plot No. E-2 (Nighoje Pune)
3,40,078 sqft
₹25.7

KGC Logistics,
NDR Warehousing (Sate Pune)
2,40,900 sqft
₹24.0
Sector Occupancy
5% 2% Lumax Industries,
15% 6% 28% 30% 9% 5% Horizon (Embassy) Industrial Park
Chakan ₹30.0
1,81,598 sqft

3PL E-Commerce Retail Automotive

Bobst India,
Manufacturing Electrical/Electronics VLJ Industrial Park ₹29.0
Electrical/Electronics Others 1,52,502 sqft
Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 5

Bengaluru
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 1.6

30

9M CY’23 Demand (msf) 2.9 24.9

22.1 22.8 22.3 23.2

Wt. Avg. Rentals (INR / sqft / month)

18.1 19.6
24
9M CY’22 Demand (msf) 4.4 20
21 21.6 22.8
18.9 19.7
17.8
Current Grade A Stock (msf) 26.5
10

Current Vacancy 5.6%

Current Passing Rent * 0

(₹/sqft/month) 24

Current Market Rent ^ 24.9

16%
(₹/sqft/month)
14%
12.6%
12%
5.0
8.6% 10%
Mn.sq.ft.

5.3
10.3% 7.9%

4.7
8%
6.5% 6.4%
5.6% 6%

3.1
3.1

3.0
3.0

2.9
2.6

4%
2.4

2.1

1.9
Growth in Passing
1.7

5.7%

1.6
2%
1.6

Rent 0.0 0%
CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23
Last 12 months
Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter

Supply Growth
Major Warehouse Transactions

24.8%
Allcargo Supply Chain,
Q3 CY’23 vs
₹19.7
All Cargo Global Logistics
Q3 CY’22 (Addaguriki)
1,13,753 sqft

Faiveley Transport Rail

Technologies India,
Avigna Industrial Warehousing ₹19.2
Park
Sector Occupancy 81,399 sqft

22% 3% Schneider Electric,

17% 8% 5% 4%
19% 22% Plot No. 46 (Bommasandra
Jigani Link Road) ₹32.0
58,250 sqft

3PL E-Commerce Retail Automotive SM Exhaust Technology,

Manufacturing Electrical/Electronics Avigna Industrial Warehousing
Park ₹19.0
Electrical/Electronics Others
54,384 sqft
Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 6

Chennai
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 1.6

40

9M CY’23 Demand (msf) 1.5

Wt. Avg. Rentals (INR / sqft / month)

30
30 23.7 25.9
21.5 25.2
22.5
9M CY’22 Demand (msf) 2.3 21.7
27.1
20 23.5
21.7 23.4
Current Grade A Stock (msf) 23.6 20.5 23.2
20.4

10
Current Vacancy 9.2%

Current Passing Rent * 0

(₹/sqft/month) 27.1
47.9% 50%
Current Market Rent ^ 30 45%
(₹/sqft/month)
40%

35%
38.3%
5.0 30%

5.4
Mn.sq.ft.

25%
25.7%

4.1
20%

3.5
3.2
15%

2.9
9.2%

2.6
2.6

10%
Demand Growth 6.2%
2.1

9.2%

19%
1.6

1.6
7.7% 5%
1.4

1.5
Q3 CY’23 vs
1.3

1.1

0.0 0%

Q2 CY’23 CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23

Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter
Major Warehouse Transactions

1.8X
Supply Growth
Welspun Bapl,
Q3 CY’23 vs
Q2 CY’23
Plot No. C-11 (Sipcot Industrial
Complex)
₹20.4
1,05,884 sqft

Connextd India,
Greenbase Industrial & Logistics
Park (Oragadam) ₹27.5
83,941 sqft
Sector Occupancy
Manohar Filaments,
5% 1%
27% 3% 15% 32% 13% 4%
Indospace Industrial Park
Oragadam ₹26.8
75,981 sqft

Honda Cars India,

3PL E-Commerce Retail Automotive

Manufacturing Electrical/Electronics
Ascendas Firstspace (Sun Logistics
Park) ₹20.9
Electrical/Electronics Others
Periyapalayam Industrial Park
75,730 sqft
Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 7

Hyderabad
Market Trends
Fundamentals
Demand Supply Vacancy Passing Rent* Market Rent^

9M CY’23 Supply (msf) 0.9

40

9M CY’23 Demand (msf) 1.2

Wt. Avg. Rentals (INR / sqft / month)

30

20.4 22.8 22.9

9M CY’22 Demand (msf) 1.8 19.9
16.1
20 15.3 15.8
19.3 20.7
Current Grade A Stock (msf) 14.5 17.6
15.2 15.1 14.8 16.3
10

Current Vacancy 10.4%

0
Current Passing Rent *
(₹/sqft/month) 20.7
3.0 45%
Current Market Rent ^ 22.9 40%
(₹/sqft/month)
33.8% 31.8% 35%

2.6
2.4
28.4% 30%
30.9%
Mn.sq.ft.

25%

1.8
10.4%

1.7
1.6 20%
1.4

1.4
15%

1.2
20.5%

1.1
10%
0.9

0.9
4.9%
12.8%
Vacancy
0.03

5%
0.6

0.5

Q3 CY’23 vs 0.0 0%
CY'17 CY'18 CY'19 CY'20 CY'21 CY'22 9M CY'23
Q3 CY’22
Note
Passing Rent* = Wt. Avg. lease rent paid by all active tenants as of that Year in the region
Market Rent^ = Wt. Avg. lease rent paid by tenants who have taken up new space in that
particular quarter
Major Warehouse Transactions

7.2%
Growth in Passing
Rent
Last 12 months Intelligent Supply
Chain Infrastructure
Management, ₹20.1
Zeromile Warehousing Park
(Pudur Hyderabad)
39,020 sqft
Sector Occupancy
17% 4%
31% 6%
20% 3% 12% 7%

Ajanta Pharma,

₹23.0
Plot No. C-8/1 (Uppal Hyderabad)
15,336 sqft
3PL E-Commerce Retail Automotive

Manufacturing Electrical/Electronics

Electrical/Electronics Others

Note : Others include sectors such as IT/ITes, Telecom, Trading

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23 8

 Manoj Gaur Boman Irani Shekhar G Patel Mr. G Ram Reddy
Chairman President President-Elect Secretary

Deepak Goradia Anand Singhania Nandu Belani Sunil Furde Swaminathan Sridharan Shobhit Mohan Das
Vice President (West) Vice President (Central) Vice President (East) Vice President (Special) Vice President (South) Vice President (North)

Statistics and Research Committee

Dr. Adv. Harshul Savla Dharmendra Karia Joydeep Ponugoti

Chairman Co-Chairman Co-Chairman

PR and Media Committee

Raajesh Prajapati Deepak Kapoor Amit Raja

Chairman Co-Chairman Co- Chairman

CRE Matrix | Grade A India Warehousing Quarterly Report – 9M CY’23

Authors

Pranali Sagwekar
Real Estate Analyst
[email protected]

Pranav Bhalla Grade-A

Head – Research & Consulting India Warehousing
[email protected] Report H1 - CY'23
September 2023

Abhishek Tiwari
Co-founder
[email protected]

Abhishek Kiran Gupta

CEO & Co-founder MMR Housing Report
[email protected] August 2023

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