Warehousing – Scope In Hyderabad

Warehousing – Scope In Hyderabad

Warehousing – Scope In Hyderabad

Sep 07, 2020

The total warehousing industry in India has witnessed massive participation from institutional investors and developers who have collectively invested over $6.8 billion since 2014 with an average investment of $282 million, per deal.

Hyderabad is seeing a quantum jump in the demand for warehousing space. Statistics indicate, Hyderabad is having the highest warehousing development potential (by 2.19 times) amongst the top 8 cities in India. Its warehousing market witnessed 3.4 million sq. ft. leasing activity in FY 2020. The warehousing asset class in Hyderabad has seen a robust compounded annual growth rate of 41% for the period from 2017-2020.

Hyderabad has the potential to more than double its existing stock from 13 million sq. ft. to 29 million sq. ft. which comes on the back of a land pool of approximately 1291 acres committed to warehousing.

Hyderabad’s warehousing market is a consumption centre driven by e-commerce, retail and FMCG. Since large e-commerce and FMCG players prefer to outsource their logistics and warehousing needs, the share of third-party logistics has gone up to 31% in 2020.

Hence, it is envisaged that the investment interest in the warehousing market in Hyderabad remains strong and will fuel its momentum even further over the long run.

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