HYDERABAD: E-commerce and consumer durables occupiers have driven warehousing demand in H2 2021 in Hyderabad. The warehousing sector witnessed significant demand from e-commerce (66 percent) followed by consumer durables (17 percent) occupiers during H2 2021.
According to Cushman and Wakefield, during the H2 2021, leasing activity recorded a growth of around 15 percent, with 1.75 million sq.ft. of space getting leased. On an annual basis, leasing activity witnessed significant momentum with 3.3 million sq.ft of space being leased, a growth of over 60 percent from 2020.
The western and north-western corridors, particularly locations such as Patancheru, Edulnagulapally, Gundlapochampally, Medchal and Kallakal are expected to witness most of the traction in the short to midterm.
The State government has formulated a new policy for the logistics sector in the second half of 2021 to attract an investment of Rs 10,000 crore by 2026. Meanwhile, industrial and warehousing quoted rentals across all corridors of the city have witnessed a marginal increase of 3 to 5 per cent during H2 2021, when compared on a half-yearly basis.
Prime micro-markets of Kandlakoya and Medchal in the northern quadrant witnessed robust leasing activity during 2021, resulting in limited availability of quality warehousing space by end of the year. With rising demand, rentals are very likely to rise further in the next six to 12 months.