Warehouses add-on to realty’s growth

Warehouses add-on to realty’s growth
01/10/2018 , by , in News/Views

Warehousing is emerging as a new driver for real estate growth in Hyderabad. Advancement in e-commerce and the need for a shorter turnaround time for delivery has led a to an increase in the warehousing segment, according to a survey conducted by KPMG in association with Naredco and APREA. It said similar trend can also be seen in Mumbai, NCR, Ahmedabad, Bengaluru, Pune and Chennai.

The survey said the Indian warehousing segment is undergoing structural shifts due to the implementation of GST. Smaller and fragmented warehouses are getting consolidated into centralized warehousing hubs with increasing focus on supply chain efficiencies. The sector which grew at a CAGR of 15% during 2014-16 is now growing at 21% for Grade A and B warehouse stock projections.

Chemical and pharmaceutical sectors are the largest drivers of the warehousing realty. Hyderabad accounts for 40% of the total Indian bulk drug production and 50% of the bulk drug exports.

The survey also said that electronics and white goods segment is expected to be the next big sector, with the need of substantial warehouse in urban and semi-urban areas.

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