Mumbai has recorded warehousing transaction of 8.6 mn sft in FY 2022 as compared to 5.8 mn sft in FY 2021, a 48 per cent YoY increase. This is the highest warehousing transaction in the last six years, says a study. As per a report from Knight Frank India, this is largely on account of an escalation in demand for warehouses post the second wave of Covid 19, which had brought decision making to a standstill.
With respect to industry-split of transaction volumes, third-party-logistics (3PL) shines as the largest demand driver for warehousing, accounting for 57 per cent share of the area’s warehousing transactions. E-commerce emerged as the second largest demand driver, accounting to 22 per cent in FY 2022. The manufacturing sector (vehicle & pharma) excluding FMCG and FMCD took a leap in share of transaction quantity from 4 per cent in FY 2021 to 16 per cent in FY 2022.
With respect to cluster split transactions, warehouses in Bhiwandi led the market share of warehousing transactions, accounting for 71 percent of the total transacted volume during FY 2022.
Speaking to Bizz Buzz, Shishir Bajaj, CMD, Knight Frank India, stated, “The Panvel Warehousing cluster located on the southern corridor witnessed an exponential increase in demand. The regions share increased from 1 per cent in FY 2021 to 29 per cent in FY 2022. The cluster is in close proximity to the JNPT port, the largest port in India and to the upcoming Panvel airport it primarily caters to EXIM demand.”
Further he states that the Panvel warehousing cluster has the presence of a number of the distinguished organised builders offering Grade A warehouses with individual players capturing the manufacturing and 3PL demand in FY 2022.