Mfg Sector Fueling Warehouse Property Deals Across India

Mumbai: The manufacturing sector is driving up warehouse transactions across eight key Indian markets which has shot up by 20 per cent to 14.65 million square feet (mn sq ft) in Q3 2024 (July - September) compared to the same period last year. Notably, 41 per cent of these transactions involved Grade A spaces, according to a Knight Frank India report released on Tuesday. The manufacturing sector outperformed the third-party logistics (3PL) sector in leasing volume. This is a significant shift, as 3PL, which is a business that manages a company’s supply chain and distribution services, has traditionally dominated the Indian warehousing market, the report by the property consultancy firm states.

Manufacturing industries accounted for 37 per cent of total transactions, leasing 14 mn sq ft from January - September 2024.

The year-to-date transaction volumes reached 37.54 mn sq ft in the first nine months of 2024, marking a 4 per cent YoY increase as occupieRssteadily expanded their footprint, the report said.

Transaction volumes were well distributed across markets. Pune, the leading market, accounted for 23 per cent of the total warehousing volume, driven primarily by the 3PL sector. NCR was the second most prolific market, representing 13 per cent of the total warehousing area transacted during the period, with 3PL and manufacturing sectoRsdriving volumes, according to the report.

Transaction volumes were well distributed across markets, with Pune leading at 23 per cent of the total warehousing volume, driven predominantly by the 3PL sector. NCR followed, contributing 13 per cent to the total transacted area, with significant activity from the 3PL and manufacturing sectors.