Bengaluru and Delhi are among the top 10 APAC cities with the highest warehouse rent rise
According to a report released by the real estate consultancy Knight Frank, Bengaluru and Delhi-NCR were among the top 10 cities in the Asia-Pacific (APAC) region where warehouse rent increased at the fastest rate in the previous 12 months. In these cities, the rent rose less than the average of 10.4% in the 17 cities analysed for the report.
Asia-Pacific Logistics Highlight H1 2023 reported that Bengaluru's warehouse rent increased 7.5% over the previous 12 months, while the rise in Delhi-NCR was 6.6%. Mumbai, which came in at number 11, experienced a 4.2% increase in rent. Bengaluru and Delhi-NCR ranked 6th and 8th, respectively.
"Demand is still holding steady at close to record levels in the three major Indian warehousing markets. As vacancies significantly decreased over the past six months, Mumbai and Bengaluru saw a solid increase in lease transaction volumes, according to Knight Frank.
Although the demand from the e-commerce industry has decreased, it was nevertheless met by the third-party logistics (3PL) industry. E-commerce is anticipated to make a rebound in the upcoming days as a result of the festive season.
With a 49.8% increase in warehouse rent, Manila topped the list in the APAC region. Following it were 23.8% in Brisbane and 38.6% in Sydney. Shanghai and Beijing in China were the only two cities out of the 17 to see a decrease in rent of more than 1%.
According to Mr. Shishir Baijal, Chairman and Managing Director and Knight Frank India, "With India emerging as one of the fastest growing major economies in the world, business activities across the country are moving firmly along the growth path. The Indian warehousing sector in particular has been a standout performer. Transaction volumes in FY23 have equalled the record-breaking levels of FY22.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.