E-commerce and consumer durables companies have pushed up the warehousing demand in H2 2021 in Hyderabad. Incidentally, the warehousing sector had 66 percent demand from e-commerce, followed by consumer durables, which had 17 percent demand.
Hyderabad is being looked upon as a warehousing hub as the government has been developing infrastructure in the western and northern corridors of the city. Also, the city is strategically positioned in the south-central zone, which is one of the reasons behind the increased demand.
According to Cushman and Wakefield, leasing activity recorded a growth of around 15 percent, with 1.75 million sq ft of space getting leased in H2 2021. If one looks at the annual figures, leasing activity witnessed significant growth, with 3.3 million sq ft of space being leased. This, in short, means a growth of 60 percent from 2020.
The hubs of warehousing happen to be places like Patancheru, Edulanagulapally, Gundlapochampally, Medchal, and Kallakal in the western and north-western corridors are expected to witness maximum traction in the coming days.
Also, on its part, the state government has come up with a new policy for the logistics sector in the second half of 2021 to attract an investment of Rs 10,000 crore by 2026. Subsequently, the industrial and warehousing rentals across all corridors of the city have witnessed a slight increase from 3 to 5 percent in H2 2021.
On the other hand, micro-markets of Kandlakaya and Medchal in the northern zone saw robust leasing activity during 2021, resulting in a shortage of quality warehousing space. Given this scenario, the industry experts opine, the rentals will go further up in the next 6 to 12 months.