Connect with us










News

Bengaluru’s Warehouse Absorption rises to 3.9 Mn Sq. ft. in 2022: India Sotheby’s International Realty 

Bengaluru, June 7, 2023: Bengaluru is likely to witness a surge in investment for developing premium warehousing park to meet growing demand for storage space from e-commerce and third-party logistics players, according to a white paper named ‘Ahead of The Curve – Bengaluru Warehousing’ by India Sotheby’s International Realty with inputs from real estate data research company CRE Matrix.

The demand-supply trend of the last five calendar years (2018-22) shows that demand has outstripped new supply by far, resulting in very low vacancy levels in existing warehousing parks and a decent growth in rentals.

According to white paper data provided by CRE Matrixthe cumulative absorption of warehousing space in Bengaluru during the 2018-22 period stood at 16.34 million square feet, while new supply was 10.5 million square feet.

“Bengaluru will be in the spotlight for investments in warehouses with greater capacity for e-commerce fulfilment. Based on the anticipated rise in demand, we project that more than 250 acre of land would be required in the periphery of Bengaluru city to develop new warehousing facilities,” said  Gagan Randev, Executive Director – Capital Markets, India Sotheby’s International Realty.

Another significant trend observed in the market is the notable and recent rise in market rentals within the sector.  In 2022, market rentals experienced a remarkable increase of 10%, surpassing the average rental hikes of 5-6% witnessed in previous years.

“This upward trajectory indicates a further tightening of the market. As a result, owners have gained the advantage of negotiating more favourable rental terms with new occupiers. The considerable rise of 10% in market rentals, compared to the in-place rental increase of 2% in 2022, clearly reflects this positive trend,” opined  Harikesh Ananthamurthy, Senior Vice President – Capital Markets, India Sotheby’s International Realty.

The paper further said the demand for land in Bengaluru is expected to be evenly distributed among different clusters, facilitated by the city’s expansion and peripheral ring road, allowing for seamless transfer between clusters and consumption centres.

Advertisement










India Sotheby’s International Realty said organized large players are acquiring land with long-term demand in mind, facing challenges in availability and conversion. Valuation depends on expected earnings, construction costs, and approval expenses. The sector sees a drive towards automation, IoT, better warehouse management, security, and sustainability.

Landowners, it added, often have high expectations and asking prices, and valuation depends on anticipated earnings from warehousing rentals, construction costs, and approval expenses.

Latest News

News2 days ago

Central Park’s Bignonia Towers in Sohna Achieves Rs 500cr Sales Bookings 

New Delhi, 14th June 2024: Bignonia Towers by Central Park in in Sohna has recorded sales bookings of Rs 500...

News2 days ago

Author Ashwinder R. Singh Launches His Third Book, “Master Commercial Real Estate”

June 14, 2024: Ashwinder R. Singh, acclaimed for his insightful contributions to real estate, launched his third book, “Master Commercial...

News2 days ago

Grade A Office Spaces Demand Growing at a Brisk pace, 164.3 Mn Sq Ft Added Since 2021

June 14, 2024: India’s office market is undergoing a profound transformation, reflecting the country’s robust economic growth, demographic advantages, and...

News2 days ago

Real Estate Sector Needs to Gear Up for New Housing Challenges Until 2029, With Rain Harvesting as a Core Element for Housing Projects: HUA Additional Secretary

New Delhi, June 14, 2024: Additional Secretary of the Ministry of Housing and Urban Affairs, D Thara, on Friday asked...

News3 days ago

Tier-2 Cities Closing the Gap with Top-8 as Property Prices Surge by 10-15% in Prime Areas: Housing.com Report

New Delhi, June 13, 2024: Housing.com has released its inaugural “The Bharat in India” report on Thursday. The report unveils...

News3 days ago

Housing Prices Soar 13% CAGR as Inflation Moderates to 5.4%: ANAROCK Report 

Mumbai, June 13, 2024: Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money...

Trending