Warehousing demand expected to grow around 160%: JLL
According to the ‘India Real Estate Outlook - A new growth cycle’ by JLL, despite unfavorable socio-economic environment, warehousing stock in top eight cities namely NCR Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad has added 27 million sq. ft to reach a total of 238 million sq. ft. in 2020. Further, the demand is expected to grow around 160% to reach 35 million sq. ft in 2021 if the external conditions stay stable. Probably over the next one to two quarters, a better picture will emerge.
Yogesh Shevade, Head Industrial Services, JLL, India said, “In Q4, the market started gaining momentum with highest supply and absorption in 2020 post the lockdown. Industrial spaces witnessed a 13% Y-o-Y growth in total stock in Grade A & B warehousing space in top eight cities. The overall warehousing space stands at 238 million sq. ft at the end of 2020 compared to 211 million sq. ft in the previous year thereby resulting in a net supply of 27 million sq. ft”.
The warehousing and logistics market in India started gaining impetus with highest supply and absorption in the Q4 of 2020. The demand is expected to increase in 2021 and reach close to 35 million sq. ft of absorption, almost similar in line with 2019 levels - supported by growing demand in sectors such as 3PL and e-commerce. 3PL has become one of the fastest growing segments in the warehousing space, contributing nearly 35% of total net absorption in 2020, highest among all the other sectors.
Tier II and III cities are gaining strength in warehousing is eminent from the changing pattern of a typical warehouse sizes with some large transaction sizes of 0.3 - 0.4 million sq. ft, even in cities such as Coimbatore and Lucknow as outliers and ranging between 0.1 - 0.2 million sq. ft in general, as compared to 0.025 – 0.05 million sq. ft a few years back.
On the manufacturing front, India stands out as a potential powerhouse with new trends being observed and is expected to continue in the built manufacturing sector such as flex manufacturing. Manufacturing companies are looking for new trends such as rented factories which help in higher CAPEX savings for the owner as it converts CAPEX (land and building) to OPEX (rent). Ready-built factories with pre-constructed/ ready infrastructure as well as built-to-suit factories are available on rent.
Amithmart announces the first ever night market in Kolkata
Amithmart has come up with an idea of night market and announced that they have created the industry’s first upfront dedicated to people. This will provide people of Kolkata to market for variety in flooring materials like marble, tiles etc. along with bathroom and kitchen lifestyle products and solutions. It will suit to the needs of every clientele as per their individual needs and choices till 2.00 a.m. in their store located at Chinar Park.
The onset of the global pandemic has accelerated several important trends that were already reshaping the future of offline market. Night market will give the customer with more time and space to move around the store. Additionally, the city will get a greater night time economy, more jobs, revitalisation of public space, foster tourism and they will get huge benefit of pricing.
Amithmart will give women a benefit of getting more attractive offers on selected items. Amithmart also celebrated International women’s day by felicitating the women’s from different fields of life in their Chinar Park showroom.
Speaking on the occasion Amit Agarwal, Managing Director, Amithmart commented, “We knew it would be valuable for our clients to have a dedicated time entirely on customer need in this pandemic period. We welcome the challenge of staying at the vary leading edge of change and opportunity we are giving to the people of Kolkata.”