$3.8 Bn Funding Needed to Meet India’s 223 Mn sq. ft. Warehousing Demand in Next 3 Years By Shobhit Agarwal, ANAROCK Capital
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Below view on $3.8 Bn Funding Needed to Meet India’s 223 Mn sq. ft. Warehousing Demand in Next 3 Years By Shobhit Agarwal, MD & CEO - ANAROCK Capital
India will need to create adequate supply to meet an absorption of approx. 223 mn sq ft of Grade A warehousing demand over the next 3 years, finds the CREDAI-ANAROCK report 'India Warehousing - A Sunrise Sector'. The report was released at NATCON 2022 held from in Abu Dhabi from 11-13 November, 2022. An equity investment of around $3.8 bn will be required to support this scale of development.
Shobhit Agarwal, MD & CEO - ANAROCK Capital, says "Based on the data, the sector currently has 'dry powder' funding of $900 mn from existing commitments. This signifies a latent investment opportunity of further $2.8 bn in the warehousing sector in the near future. Much of this funding will need to target Grade A warehousing facilities, which is witnessing increasing demand due to its direct and indirect beneficial impacts on overall operational efficiencies."
The absorption of Grade A warehousing increased from 34 Mn sq. ft in 2018 to 48.5 Mn sq. ft in 2021 at a CAGR of 12.6%, states the report. Meanwhile, supply in this category rose from 37.8 Mn sq. ft to 51 Mn sq. ft in the same period at a CAGR of 10.6%.
The top 7 Indian cities witnessed approx. 160+ Mn sq. ft of Grade A warehouse leasing and was highest in the Western markets of MMR and Pune, followed by the primary Southern markets of Bangalore, Chennai and Hyderabad, which together saw 32% of the overall leasing volumes.
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