Delhi NCR sees 45% CAGR growth in warehousing transactions from FY 2017-20

According to India Warehousing Market Report 2020 by Knight Frank, “National Capital Region (NCR) emerges as the foremost market recording the highest volume of leasing at 8.6 million square feet (mn sq ft). It also recorded a 45 per cent CAGR growth in demand over a three year period. The report also notes that an additional 193 mn sq ft of warehousing space can be built on the existing land committed to warehousing across the top 8 cities of India. This works out to a 63 per cent addition to the existing 307 mn sq ft of warehousing stock in these markets

NCR has a development potential multiple of 1.75, which implies that 75 per cent more warehousing space, can be added to the region. The current stock is reported to be 57mn sq ft with a potential of expansion to 100mn sq ft on warehousing land of 4,178 acres in NCR.
In FY2020, 28 per cent of the warehousing space was leased by e-commerce followed by the manufacturing sector (24 per cent). Major occupiers such as Flipkart and Amazon took up warehouses at the exit points of the Kundli Manesar Palwal Expressway (KMP).

The compounded annual growth rate (CAGR) for warehousing transactions for the period FY2017-20 in NCR remained positive with 45 per cent. The warehousing demand in the NCR market has kept vacancy levels low at 13.9 per cent compared to other markets such as Bengaluru and Pune which have vacancy levels of 29.7 per cent and 21.8 per cent respectively.