WAREHOUSE LEASING: RISING DEMAND IN EASTERN INDIA

Kolkata is leading with approx 10 million sq ft leased followed by Guwahati at 2.5 million sq ft, Patna at 2 Million sq ft and Bhubaneswar at 1.5 million sq ft.

The average rentals in Kolkata was in range of 15 to Rs 24 Per Sq ft while at other main eastern cities in range of Rs 13 to Rs 24 per sq ft depending upon warehouse location and infrastructure quality.

The average big ticket leasing at Kolkata was in range of 50,000- 1,00,000 sq ft whereas same in Guwahati was in range of 30,000–60,000 sq ft , Patna in range of 25,000–50,000 and Bhubaneswar in range of 20,000–40,000 sq ft.

70 % of leasing in Kolkata was in area of Dhulagarh, Sankrail & Uluberia along NH 6

The implementation of GST had huge positive impact on warehouse leasing across India with a growth of over 50 % in H1 2017 compared to H2 2016. Guwahati has opened the gateway for expanding the businesses in North east , 2018 will see a major surge in warehousing and distribution industry. It will not only reduce the load on Kolkata but will provide tremendous opportunities for warehousing and 3PL industries in other eastern cities of India.

Also cities like Patna, Bhubaneshwar and Ranchi has been hugely undermined in warehousing and distribution sector. Now with increase in better road network and removed barriers of states taxes with GST, it is expected to realize its full potential. These cities saw increase of 34% in H1 2017 compared to H2 2016 in warehousing sector.

It’s time to have close watch on how warehousing story unfolds in Eastern India and invest accordingly.

Regards

Ranbir

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