Warehouse & logistics supply to grow 14% YOY: ICRA

According to ICRA’s latest reports, “Industrial and warehouse logistics park (IWLP) supply is estimated to grow 13-14% year-on-year at around 424 million square feet this fiscal in the eight primary markets, driven by strong demand.” The report stated, the absorption is likely to be 47 million square feet in FY25 as compared to 37 million square feet in the previous fiscal. The sector continues to witness a sustained demand from third-party logistics (3PL) and manufacturing sectors, which together accounted for around 65% of the total leased area as of March 2024 while the share of e-commerce stood at 15%. The growth projections are based on a sample set of ICRA’s rated-portfolio that includes 58 entities across 17 cities having total leasable area of around 34-million sq ft. It also said that among the eight primary markets, around 42 of the warehousing stock as of March 2024 was contributed by Mumbai and Delhi-NCR while the overall occupancy remained healthy at around 90%. The vacancy in the eight primary markets stood at 10% in FY24 and is likely to remain at a similar level in FY25, the report said.