Ahmedabad has registered a 129% increase in warehousing transactions in the third quarter of the current calendar year, which is the highest among the top eight cities in the country, said a report by real estate consultant Knight Frank India.
Ahmedabad also registered the highest growth of 55% among the top eight cities of the country, according to the report. The city also saw an average 4% increase in rent.
“Ahmedabad and Kolkata experienced a significant spike in transaction activity in Q3 2024, with volumes growing at a steep 129% and 122% year-on-year during the period,” the consultant’s report said.
” This spike in volume during the quarter has pushed the transaction share of both markets to 13% each in Jan–Sep 2024, compared to 9% each during the same period last year,” said Knight Frank India’s report titled ‘India Warehousing Market Report – Q3 2024′.
The report cited that warehouse transactions across eight key Indian markets reached 14.65 million square feet (mn sq ft) in Q3 2024 (July–Sep). Notably, 41% of these transactions involved Grade A spaces.
The manufacturing sector outperformed the third party logistic sector (3PL) in leasing volume, marking a significant shift, as third party logistic sector has traditionally dominated the Indian warehousing market. Manufacturing industries accounted for 37% of total transactions, leasing 14 mn sq ft from January–September 2024.
The market regained momentum in Q3 2024, with 14.65 mn sq ft transacted, reflecting a 20% year-on-year growth.
Year-to-date transaction volumes reached 37.54 mn sq ft in the first nine months of 2024, marking a 4% year-on-year increase as occupiers steadily expanded their footprint.