With a 128% jump in warehousing transactions, Hyderabad has clocked the second highest growth in the warehousing sector for financial year 2021-22 after Pune which registered a 166% growth, as per Knight Frank report.
With a 128% jump in warehousing transactions, Hyderabad has clocked the second highest growth in the warehousing sector for financial year 2021-22 after Pune which registered a 166% growth, as per Knight Frank India’s latest report.
While Pune saw transactions to the tune of 7.5 million sq feet during FY22 as compared to 2.79 msft in 2020-21, Hyderabad saw transactions jump from 2.36 msft in FY21 to 5.4 msft in FY22. The jump was higher in Hyderabad as compared to some other cities as there was a dip in transactions in FY21 from 3.4 msft in FY20 and 4 msft at the peak in FY19.
However, when it comes to actual size of transactions in FY22, NCR topped the list with transactions of 9.1 msft in FY22, followed by Mumbai with 8.6 msft, Pune with 7.5 msft, Bengaluru with 5.9 msft and Hyderabad at fifth spot with 5.4 msft.
Knight Frank India’s ‘Warehousing Report 2022’ said that the growth was primarily driven by the increased demand by the third-party logistics (3PL) space. “With most retail and e-commerce companies preferring to outsource their logistics and warehousing operations to 3PL players in recent years, warehousing demand by 3PL occupiers has grown in Hyderabad from 24% in FY21 to 31% in FY22,” the firm said.
However, the retail sector witnessed the highest growth in demand for warehousing from zero in FY21 to 14% in FY22. The demand from manufacturing sector also saw an increase from 2% in FY21 to 16% in FY22 on the back of some sizable transactions in the paint and pharma sector.
