Demand for warehousing space to rise 60% by 2020

A recent survey by a property consultancy has shown that the demand over warehousing sector in Delhi-NCR is likely to rise 60 percent in the next four years. By the end of April 2016, the space requirement for warehousing sector was estimated around 223 million sq ft.

warehouse spaceWith such a huge market size and given that the e-commerce is growing fast, Delhi-NCR will offer ample opportunities for the growth of warehousing sector. While manufacturing sector is in dearth of over 80 percent of the total space requirement, the rest 20 percent accounts to consumption sector.

The passage of GST (Goods and Service Tax) Bill, which has been widely touted as our biggest tax reform, is expected to provide the impetus for warehousing demand for manufacturing and consumption sectors. The logistics sector is also expected to grow phenomenally by the end of 2020.

With a demand of 43% warehousing space requirement, the category of apparels, sportswear and footwear accounts for the largest demand for about 16 million sq ft. Presently, the warehousing clusters in NH-8 and Ghaziabad caters around 80 percent of Delhi-NCR’s total requirement.

However, the market indices and expert opinions reveal that the warehousing sector is witnessing substantial development. Several analysts who had attended the India Warehousing Conference held in Pragati Maidan earlier this month had analyzed that Centre and industry can together address the challenges faced by warehousing industry, even when a better development progress is evident for the past year in the market.

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