Mumbai records warehousing deals of 8.6 mn sft in FY'22

Mumbai: Mumbai recorded warehousing transactions of 8.6 mn sft in FY 2022 compared to 5.8 mn sft in FY 2021, says a study. This is highest transaction volumes recorded in the last six years with a 48 per cent YoY growth. This is largely due to an escalation in demand for warehouses post the second wave of Covid 19, which had brought decision making to a standstill, reveals a report by Knight Frank India.

With respect to industry-split of transaction volume, third-party-logistics (3PL) segment continued to remain the biggest demand driver for warehousing. The sector accounted for 57 per cent share of the region's warehousing transactions, followed by e-commerce sector accounting to 22 per cent in FY 2022. The manufacturing sector (automobile & pharma) excluding FMCG and FMCD witnessed maximum increase in share of transaction volume from 4 per cent in FY 2021 to 16 per cent in FY 2022.

With respected to cluster split transactions, warehouses in Bhiwandi led the market share of warehousing transactions. The region accounted for 71 per cent of the total transacted volume during FY 2022.

Talking to Bizz Buzz, Shishir Bajaj, CMD, Knight Frank India, said, "The Panvel Warehousing cluster located on the southern corridor witnessed an exponential increase in demand. The regions share increased from 1 per cent in FY 2021 to 29 per cent in FY 2022. The cluster is in close proximity to the JNPT port, the largest port in India and to the upcoming Panvel airport it primarily caters to EXIM demand."

Panvel warehousing cluster has the presence of some of the prominent organised developers providing Grade A spaces along with individual players capturing the manufacturing and 3 PL demand in FY 2022, he said.