Grade A warehousing leasing set to cross 45 million sq ft in 2024: CREDAI-CRE Matrix Report

With the growth in logistics and industrial sectors, Grade A warehousing market in the country is set to cross 45 mn sq ft this year with H1 2024 clocking 20.3 mn sq ft and H2 2024 projected to cross 25 mn sq ft. The rapid growth is driven by Mumbai Metropolitan Region (MMR), Pune, and NCR, which collectively account for 64% of the total demand, a new report by Credai and CRE Matrix has shown.

The country’s Grade A warehousing stock is projected to surpass 300 mn sq ft by 2025. It currently stands at 238.5 mn sq ft, providing a promising outlook for stakeholders.

The report also revealed that the warehousing demand/ leasing of 20.3 mn sq ft in H1 2024 far surpassed new supply, which stood at 14.8 mn sq ft. The segment also recorded the lowest ever vacancy rate of 8.2%.

It underscored the prevalence of regional trends, such as a 25% increase in Grade A supply in Bengaluru between Q1 and Q2 2024 showcasing the steady growth of warehousing infrastructure in the city. 

Pune has also witnessed demand for Grade A warehousing space, contributing significantly to overall demand in the market. In H1 2024, Pune alone accounted for 48% of the total demand registered in the MMR-Pune region. Despite a surge in demand, Pune faces a supply shortage, with the demand-to-supply ratio hitting 2x, indicating the potential for significant new development in the coming quarters

Similarly, Chennai registered a demand-to-supply ratio of 1.6x, highlighting the increasing attractiveness of its logistics infrastructure. With a vacancy rate of just 7.4%, the city is poised to maintain its upward trajectory as more industries look to establish a presence in this vital southern market. This also indicates the region's emerging role as a logistics and manufacturing hub.