Delhi-NCR's Warehousing Potential: 34.6 Million Sq Ft Available, Says Report
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Synopsis
Delhi-NCR achieved 9.2 million square feet in warehousing transactions in 2024, representing 16 percent of the overall market share. The region has the potential to develop an additional 34.6 million square feet of warehousing space to meet future demand, according to Knight Frank India.
Key Takeaways
- Delhi-NCR recorded 9.2 mn sq ft transactions in 2024.
- 34.6 mn sq ft of additional warehousing potential exists.
- 3PL sector leads in warehousing transactions.
- NH48/KMP is NCR's dominant logistics hub.
- Rental trends remain stable at Rs 21.3 per sq ft.
New Delhi, March 22 (NationPress) Delhi-NCR achieved 9.2 million square feet (mn sq ft) in warehousing transactions during 2024, representing 16 percent of the overall market share, according to a report released on Saturday.
The NCR warehousing market possesses the capability to develop an additional 34.6 mn sq ft of warehousing space, which is nearly four times the transaction volume of 2024. This potential exists due to unutilized land that is optimally situated to address future demands, as stated in the Knight Frank India report.
Over the years, the region's comprehensive road network, linking Delhi with adjacent cities and industrial centers, has facilitated the emergence of several warehousing clusters.
In terms of sector-specific transaction volumes, the third-party logistics (3PL) sector spearheaded NCR's warehousing transactions in 2024, with the manufacturing sector following closely.
Regarding cluster-specific transactions, the NH48/Kundli Manesar Palwal Expressway (KMP) continues to be the principal logistics hub in NCR, comprising 77 percent of total leasing in 2024, an increase from 66 percent in 2023.
The Ghaziabad cluster has also expanded its share from 8 percent in 2023 to 13 percent in 2024.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, remarked that with the ongoing development of essential infrastructure projects and rising demand across various sectors, the NCR warehousing market is poised for continued growth in the near future.
“A rebound in e-commerce demand, alongside the growth of related sectors like q-commerce, will further stimulate the region's warehousing activities over the next 2-3 years,” he added.
The NCR's warehousing market has exhibited stable rental trends, valued at Rs 21.3 per sq ft per month, reflecting an average growth of 2 percent despite changing demand dynamics.
Among NCR's rental markets, the grade A warehouse in Greater Noida is deemed the most expensive, with rates ranging from Rs 30-35 per sq ft per month, as per the report.
