Witnessing a high demand for storage space from e-commerce and third-party logistics players, the leasing of warehousing space in Bengaluru touched 3.9 million square feet (msf) in 2022, according to India Sotheby’s International Realty report.
Property consultant India Sotheby’s International Realty on Monday released a white paper titled ’Ahead of The Curve – Bengaluru Warehousing’.
The report noted a significant rise in market rentals within the sector. In 2022, market rentals saw a jump of 10 percent, surpassing the average rental hikes of 5-6 percent witnessed in previous years.
"Bengaluru will be in the spotlight for investments in warehouses with greater capacity for e-commerce fulfilment. Based on the anticipated rise in demand, we project that more than 250 acres of land would be required in the periphery of Bengaluru city to develop new warehousing facilities," said Gagan Randev, Executive Director - Capital Markets, India Sotheby's International Realty.
The paper further said that demand for land in Bengaluru is expected to be evenly distributed among different clusters, facilitated by the city's expansion and peripheral ring road, allowing for seamless movement between clusters and consumption centres.
Harikesh Ananthamurthy, Senior Vice President - Capital Markets, India Sotheby's International Realty, added that manufacturing, logistics, e-commerce, and retail sectors will continue to drive the warehousing demand, with logistics and e-commerce players emerging as major occupiers.
"The involvement of larger organised players in the sector has driven a shift towards automation, IoT integration, enhanced warehouse management systems, security measures, and a focus on creating greener and sustainable built-up environments," Randev said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
