Mumbai and Pune together accounted for 63% of the total absorption in H1 2024, followed by southern cities (Bengaluru, Chennai and Hyderabad) at 29%. Mumbai’s share saw an increase from 25% in H1 2023 to 41% in H1 2024, the growth can be attributed to an increase in demand for grade-A warehouses in areas such as Bhiwandi, Panvel, Uran, Taloja, and Ambernath.
H1 2024 witnessed an absorption of 16.6 Mn sq ft, showcasing an increase of 8% over the same period a year earlier. However, it reduced by 26% when compared to H2 2023. The reduction could be attributed to a significant dip of 74% in NCR’s absorption.
NCR witnessed a significant decline in its share from 31% to 6% in the same period. Furthermore, Chennai reported absorption of 1.5 Mn sq ft in H1 2024, registering an increase of 191% over H1 2023 due to the low base effect.
City-wise Absorption
City | Absorption (Mn sq ft) | % Change | |||||
| H1 2024 | H2 2023 | H1 2023 | H1 2024 vs H1 2023 | H1 2024 vs H2 2023 |
| |
Bengaluru | 1.4 | 1.9 | 1.7 | -19% | -27% |
| |
Chennai | 1.5 | 3.0 | 0.5 | 191% | -52% |
| |
Hyderabad | 1.9 | 1.8 | 1.3 | 48% | 7% |
| |
Pune | 3.6 | 4.4 | 2.6 | 40% | -18% |
| |
Mumbai | 6.8 | 6.4 | 3.8 | 80% | 7% |
| |
Kolkata | 0.3 | 0.8 | 0.8 | -65% | -63% |
| |
NCR | 1.1 | 4.1 | 4.7 | -77% | -74% |
| |
Total | 16.6 | 22.4 | 15.4 | 8% | -26% |
| |
Sector-wise Absorption (% share of total)
Sectors | H1 2024 | H1 2023 |
3PL | 39% | 26% |
Engineering & Manufacturing | 22% | 16% |
Automobile & Auto Components | 9% | 4% |
Meanwhile, weighted average rentals marginally declined by 3% to INR 21.6/sq ft/month in H1 2024 over the same period a year ago. Rentals in Bengaluru declined the highest by 8% whereas Hyderabad witnessed a decrease of 7% during the same period stated above.
On the other hand, rentals saw a significant increase of 30% to INR 27.1/sq ft/month in Pune, followed by Chennai with 22% uptick in rentals during H1 2024 compared to H1 2023.
City-wise Weighted Average Rentals
City | Rentals (INR/sq ft/month) | % Change | |||||
| H1 2024 | H2 2023 | H1 2023 | H1 2024 vs H1 2023 | H1 2024 vs H2 2023 |
| |
Bengaluru | 20.2 | 21.2 | 22.0 | -8% | -5% |
| |
Chennai | 24.3 | 21.9 | 19.9 | 22% | 11% |
| |
Hyderabad | 19.1 | 20.0 | 20.5 | -7% | -4% |
| |
Pune | 27.1 | 23.5 | 20.9 | 30% | 15% |
| |
Mumbai | 18.7 | 22.9 | 19.7 | -5% | -18% |
| |
Kolkata | 19.1 | 20.6 | 18.2 | 5% | -7% |
| |
NCR | 23.5 | 22.7 | 22.5 | 5% | 4% |
| |
Total | 21.6 | 22.3 | 22.3 | -3% | -3% |
| |
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