Warehousing absorption expected to grow by 20% in 2020
Warehousing Stock: In the year 2019, warehouse absorption stood at 34 Mn sq. ft. and Vacancy less than 10% all India. Outlook for 2020 remains positive with a 20% growth mainly driven by Manufacturing Sector Leasing more and 3PL & Ecomm increasing their needs in Tier-II cities.
- Rental Stock: The year 2019 saw a major push on specifications and compliance from occupiers with Rents moving up by 5% to 10%. The Outlook will focus on Grade A Speculative Stock which is Compliant & Improved Specifications from Developers.
- Land: 2019 saw 3500 acres being transacted with the majority being outright purchase followed by JVs and JDs apart from few marque assets.
- Sectoral overview: Manufacturing sector absorbed around 6 Mn sq. ft. pan India. Ecommerce and 3PL leased around 20 Mn sq. ft. all India. SMEs & Electronic components manufacturers, and Auto sector leased significantly in few cities in India.