The Industrial and logistics segment in Hyderabad has absorbed 1.5 million sq ft of warehousing space from January to June this year. The demand has been nearly 50 percent more than the supply pegged at 0.9 million sq ft. Due to the expansion of third-party logistics players, most of the space has been taken in the northern corridor.
As suggested by the report from CBRE South Asia Pvt. Ltd. three players dominate the leasing activity, accounting for about 40 percent of the demand. These include 2,75,000 sqft by Flipkart in an independent warehouse, 2,00,000 sq ft by TCI Supply Chain Solutions leasing in Indian Logistics Warehouse, and 1,40,000 sq ft leasing by Safexpress in an independent warehouse during the first six months this year.
As per the report, out of the total space taken, third-party logistics accounted for 46 percent, e-commerce 21 percent, and retail nine percent.
Led by the sustained demand for investment-grade assets, rental values increased on a half-yearly basis. Rents rose by 23-25 percent in the northern corridor and about 5-12 percent across other markets of Hyderabad.
The overall industrial and leasing activity in India registered a dip of about 9 percent over last year to touch 12.8 million sq ft during the first half of the year.
The report said leasing would improve as continued land acquisition and development completions are lined up in the second half of the year. Overall, on a pan India basis, the sector attracted about $144 million (about Rs 1,137 crore) in greenfield and brownfield assets from global and domestic players during the first six months.