1.4mnsqft warehousing transaction volume in Jaipur

Jaipur, 22st September : Knight Frank India, an international property consultancy, in their latest report - ‘India Warehousing Market Report – 2022’, cited that Jaipur recorded warehousing transaction volume of1.4mnsqft in FY 2022.

This is the second-highest transaction volume recorded amongst the secondary markets of India. With a 37% YoY growth, development of Grade A warehousing facilities will further enhance the city’s prominence as an emerging warehousing market. The average rent has grown by an estimated 12% YoY in FY 2022. Rents are expected to stay buoyant, buffered by the strong demand pipeline of e-commerce and 3PL occupiers, and the increasing development of higher-spec warehousing facilities.

With respect to industry-split of transaction volume, Third Party Logistics (3PL) players led the market with highest share of transaction volumefor warehouses. The share of 3PL occupiers also increased substantially from 15% in FY 2021 to 36% in FY 2022, showcasing the logistical importance of the Jaipur market in Rajasthan.E-commerce accounted for 26% share, a decline from 32% share in FY 2021. The remaining volume transacted during FY 2022 was well distributed between the other manufacturing, FMCG and miscellaneous sectors.

ShishirBaijal, Chairman and Managing Director, Knight Frank India said, “The high growth rate of organised warehousing sector in India is a result of its rising GDP and consumerism. With warehouse leasing in India surpassing the pre-pandemic level, the sector is poised to take a quantum leap to match its more mature peers around the world. This will be supported by the ever-increasing institutional interest in owning, developing, and operating warehouse assets ensuring professional expertise to direct the course of this growing market as it matures. In terms of investment, the warehousing sector has received private equity of US$ 1.2 Bn in H1 2022, as against US$ 1.3 Bn that the sector received in the entire year of 2021, adequately demonstrating the confidence global and Indian investors have on the sector’s future.”

Shishirfurther added, “Government’s push towards development of infrastructure and India’s new Logistics Policy will help in the surge. With the strong demand recorded in the secondary markets, the warehousing momentum is gaining shape even beyond the top 8 markets in the country and the development of Multi Modal Logistics Parks will further create more warehousing zones covering the geographic expanse of the country.”received private equity of US$ 1.2 Bn in H1 2022, as against US$ 1.3 Bn that the sector received in the entire year of 2021, adequately demonstrating the confidence global and Indian investors have on the sector’s future.”

Shishir added, “Government’s push towards development of infrastructure and India’s new Logistics Policy will help in the surge. With the strong demand recorded in the secondary markets, the warehousing momentum is gaining shape even beyond the top 8 markets in the country and the development of Multi Modal Logistics Parks will further create more warehousing zones covering the geographic expanse of the country.”received private equity of US$ 1.2 Bn in H1 2022, as against US$ 1.3 Bn that the sector received in the entire year of 2021, adequately demonstrating the confidence global and Indian investors have on the sector’s future.”

The average rents have witnessed an estimated 12% YoY growth on the back of a sustained increase in demand as well as the substantial increase in input costs. Warehouse rents in Vishwakarma Industrial area and Jhotwaraalong the NH-52 corridor remained the highest in the range of INR 270-322sqm/month for Grade A facilities.

received private equity of US$ 1.2 Bn in H1 2022, as against US$ 1.3 Bn that the sector received in the entire year of 2021, adequately demonstrating the confidence global and Indian investors have on the sector’s future.”