Vijayawada sees rise in warehousing transaction volumes to 1 mn sq ft in FY-23

In its India Warehousing Market Report-2023, Knight Frank India stated that Vijayawada recorded warehousing transaction volume of 1 million square feet in financial year 2023-24 with a year-on-year growth of 22%. The city saw a significant growth from prominent Third Party Logistics (3PL) firms like Delhivery and ProConnect as well as traction from major e-commerce players like Ajio and Flipkart. Knight Frank said Vijayawada was home to several businesses such as oil and chemicals, packaged food, automotive, and spare parts, and that e-Commerce made the largest contribution accounting for 62% of the total demand. At 22% of the market, the 3PL industry had the second highest share followed by the manufacturing sector’s 10%. The rents for Vijayawada warehousing facilities range between ₹194 and ₹258 per square metre per month (₹18-24/sq ft/month) in prominent locations. Rents of Grade-A warehousing facilities such as those taken up by Flipkart and Reliance range from ₹226 to ₹258/sq m/month (₹21-24/sq ft/month) while rents for Grade-B warehouses stood in the range of ₹194 to ₹226/sq m/month (₹18-21/sq ft/month). Due to potential rise in demand from online vendors, and 3PL providers in Vijayawada market, the need for warehouse facilities is expected to rise further in near future, the report said.