Mumbai had warehousing transactions of 8.6 million square feet in FY 2022, up from 5.8 million square feet in FY 2021, representing a 48per cent YoY increase. As per a study, this is the largest warehousing transaction in the last six years. According to a Knight Frank India research, this is largely due to an increase in demand for warehouses following the second wave of Covid 19, which had slowed decision making.
In terms of industry-split transaction volumes, third-party logistics (3PL) stands out as the most important demand generator for warehousing, accounting for 57per cent of the area’s warehousing transactions. E-commerce has emerged as the second greatest demand driver, accounting for 22per cent of total demand in the fiscal year 2022. The manufacturing industry (vehicle and pharma) excluding FMCG and FMCD increased its transaction volume share from 4per cent in FY 2021 to 16per cent in FY 2022.
In terms of cluster split transactions, Bhiwandi warehouses lead the market share of warehousing transactions, accounting for 71per cent of total transacted volume during FY 2022.
“The Panvel Warehousing cluster located on the southern route witnessed an exponential surge in demand,” said Shishir Bajaj, CMD, Knight Frank India. The region’s share climbed from 1per cent in FY 2021 to 29per cent in FY 2022. The cluster is located near the JNPT port, India’s largest port, and the planned Panvel airport, and it largely serves EXIM demand.”
Furthermore, he claims that the Panvel storage cluster is home to a number of prestigious organised builders providing Grade A warehouses, with independent players grabbing manufacturing and 3PL demand in FY 2022.
