Ahmedabad: Warehouse Leasing in Ahmedabad beat Fiscal Year 2021 due to a slowdown induced by a pandemic and high financial year of 2020.
Transactions, but witnessed a surge in letters, Vadodara and Vapi on the back of the demand from third parties from third parties of logistics companies (3PL), and e -Commerce and industrial industry.
Leasing a warehouse room in Ahmedabad fell 42% to 30 square foot (SQ FT) in Fiscal 2020-21 of 51 lakh sq ft in 2019-20.
The details are part of the Indian warehouse report 2021, released on Tuesday by Knight Frank India, a real estate consultant.
The decline in warehousing transactions in Ahmedabad is largely due to economic pressure caused by a pandemic.
“It should be noted that the decrease opposed the very high 2020 fiscal basis whipped by large spaces was taken by e-commerce and 3PL segments,” said the report.
Meanwhile, warehousing rental in Ahmedabad was corrected 2-4%.
In contrast, cities such as letters, Vapi and Vadodara saw an increase in warehousing leasing this year.
Riding up a request from third-party logistics companies and e-commerce players, transactions in the warehousing market jumped by 80% to 8.27 lakh sq ft.
“Third party logistics collect 50% of the share of transactions followed by e-commerce at 25%.
Most of the rent has been stable because of the increase in demand from this segment,” the report added.
In the case of VAPI, the volume of warehouse leasing ran 296% to 6.34 lakh sq ft.
About 38% of leasing requests come from industrial segments that cover various types of light for heavy manufacturing activities.
And 62% comes from the warehousing segment, which is generally used for storage.
Warehousing in Vapi is mostly fragmented.
The small cluster is inside and around the city and the supply is divided between VAPI, Daman and Silvassa.
For Vadodara, warehousing room rentals grew by 2.5% to 4.51 lakh sq ft on FY21 of 4.40 lakh sq ft on FY20.
Companies in other sectors (all fields of manufacturing except FMCG, such as cars, electronics and pharmacies) collect 77% share of transactions.
This is followed by 3PL and e-commerce.
For the fourth city put together, the total warehouse leasing in Gujarat was recorded at 48 lakh sq ft, added the report.
“The Gujarat warehousing market during the pandemic has flipped, with established centers not doing their full potential, especially because of the economic slowdown caused by a pandemic,” said Balbirsingh Khalsa, Director of National, Industry & Logistics, Knight Frank India.
Khalsa added: “Other markets perform better because of new demand from e-commerce and 3pl segments.”