The first six months of 2019 has not been very kind to the organised warehousing sector in Bengaluru. The sector which has been growing by leaps and bounds until last year saw a decline of 47.3% year on year in terms of warehouse space absorption.
In Bengaluru, warehousing space absorption during the first six months of 2019 stood at 2 million sq. feet. The absorption for the same period last year stood at 3.8 million sq. feet.
The prevailing economic slowdown in the country could be attributed to this falling demand for warehousing space absorption in the IT capital of India which has been witnessing a surge in demand for the same since the last 3 years.
However, as a resultant of the growth of e-commerce, the organised warehousing space has been able to stand on its feet so far. According to a report, major e-commerce occupiers such as Amazon, Flipkart, Myntra, Aditya Birla, Madura Garments and Decathlon among others have driven the demand for warehousing space, particularly in the eastern and the north-western corridors in the city.
“Presently, there is considerable market demand for warehousing space from the e-commerce segment as well as from other sectors such as FMCG, pharmaceutical and manufacturing companies. The growth corridors towards the eastern, north-western and southern peripheral markets hold immense potential to cater to this demand.”– said Shrinivas Rao, CEO, APAC, Vestian Global Workplace Solutions
Bengaluru has a number of warehousing clusters along Tumakuru road towards the north-west, Devanahalli towards the north, Old Madras Road and its adjacent neighbourhoods in the eastern region, Hosur Road and adjoining areas in the south and Mysuru road in the north-western region of the city.