Hyderabad witnessed a dip of 7% in warehousing transactions during the financial year 2023. The city recorded transactions of 5.1 million square feet in 2023 compared to 5.4 million square feet in 2022. The data was revealed in the ‘India Warehousing Market Report-2023’ report released by Knight Frank India, a residential and commercial property consultancy.
The decline is mainly due to a slowdown in transactions from third-party logistics and e-commerce occupiers. In the top eight cities mentioned in the report, Ahmedabad recorded the sharpest dip of 29% followed by Bengaluru (25%), Kolkata (18%), Chennai (11%) and Mumbai (10%). The lowest dip of 2% was recorded in Pune.
The demand for warehousing continues to be dominant in the Medchal sector whose share has increased marginally from 60% in financial year 2022 to 61% in 2023. Similarly, the Patancheru cluster saw an increase of transactions from 10% in FY2022 to 11% in FY2023. Meanwhile, the Shamshabad cluster witnessed a marginal decline from 30% in FY2022 to 27% in FY2023.
Warehousing demand from the manufacturing sector is slated to increase in Telangana, considering many of the sectors that have been granted approval to the Production Linked Incentive (PLI) scheme will be based out of Hyderabad.
