Hyderabad warehouse segment transacts 5.4 million sqft in 2021-22
Hyderabad: Flipkart, Reliance Retail, ECom Express, DMart and SVS Pharma are among the top occupiers of warehouse space in Hyderabad. Shamshabad, Medchal and Patancheru are the key clusters that are seeing demand from the warehouse segment. Hyderabad saw 5.4 million sqft transacted in 2021-22. This is 128% more than 2.4 milion sqft taken during 2020-21. […]
Hyderabad: Flipkart, Reliance Retail, ECom Express, DMart and SVS Pharma are among the top occupiers of warehouse space in Hyderabad. Shamshabad, Medchal and Patancheru are the key clusters that are seeing demand from the warehouse segment. Hyderabad saw 5.4 million sqft transacted in 2021-22. This is 128% more than 2.4 milion sqft taken during 2020-21.
The growth is majorly driven by increased growth in the third party logistics (3PL) providers. With most retail and e-commerce companies preferring to outsource their logistics and warehousing operations to third parties, warehousing demand by 3PL occupiers has grown in Hyderabad. The demand for 3PL services increased from 24% in FY 2021 to 31% in FY 2022, said real estate consultancy Knight Frank in its ‘India Warehousing Market Report – 2022’.
The demand from retail sector grew to 17% in FY 2022 from a naught in FY 2021. Warehousing demand is therefore dominated by e-commerce, retail and the fast moving consumer goods and durables industries. The share of Medchal cluster increased from 48% in FY 2021 to 60% in FY 2022. The Shamshabad cluster observed a decline in activity from its 51% share the previous year to a 30% share in FY 2022. However, Patancheru cluster saw its share increase from 2% in FY 2021 to 10% in FY 2022.
Land rates grew in the Patancheru and Medchal clusters while rentals remained steady across warehousing clusters.
“The warehouse sector will be supported by the increasing institutional interest in owning, developing, and operating warehouse assets. The sector received private equity of $1.2 billion in first six month of 2022. It got $1.3 billion in entire 2021,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Land rates and rentals
Medchal
Land price is Rs 1.5 crore to Rs 4.5 crore per acre
Grade A rental is Rs 17-21 per sqft
Grade B rental is Rs 16-19 per sqft
Key projects: Musaddilal Projects, Zero Mile Warehousing
Patancheru
Land price is Rs 1.4 crore to Rs 4.5 crore per acre
Grade A rental is Rs 17-20 per sqft
Grade B rental is Rs 14-18 per sqft
Key projects: Allcargo Logistics & Industrial Parks
Shamshabad
Land price is Rs 1.5 crore to Rs 2.5 crore per acre
Grade A rental is Rs 18-20 per sqft
Grade B rental is Rs 15-17 per sqft
Key projects: ESR GMR Industrial & Logistics Park, K Raheja Corp – Industrial Park
