Avg monthly rent for warehousing spaces grows 2-5 pc in Jan-Mar in top 8 cities: Knight Frank

New Delhi, May 9 (PTI) The average monthly rent for warehousing spaces rose 2-5 per cent annually in the January-March period across eight major cities on better demand, according to Knight Frank.

In its warehousing report, real estate consultant Knight Frank India mentioned that the average monthly rent in Mumbai -- the biggest warehousing market -- rose 5 per cent to Rs 24.7 per square feet in January-March this year from Rs 23.5 per sq ft in the year-ago period.

Kolkata saw a 5 per cent increase in average monthly rent to Rs 24.8 from Rs 23.7 per sq ft.

In Ahmedabad, the monthly rent grew 4 per cent to Rs 18.3 from Rs 17.6 per sq ft.

The average rent for warehousing spaces appreciated by 3 per cent each in Pune, Delhi-NCR, Chennai and Bengaluru.

Pune witnessed a 3 per cent increase in monthly rent to Rs 26.8 from Rs 26 per square while Delhi-NCR saw a 3 per cent rise to Rs 21.2 from Rs 20.7 per sq ft.

The average rent in Chennai grew 3 per cent to Rs 24 from Rs 23.4 per sq ft, while the rent appreciated 3 per cent in Bengaluru to Rs 22.5 from Rs 21.9 per sq ft.

In Hyderabad, the average monthly rent inched up 2 per cent to Rs 20.9 per sq ft in January-March 2025 from Rs 20.5 per sq ft in the corresponding period of the preceding year.

"Rent growth had been a challenge for the warehousing market over the past decade, and it only started to gain momentum in 2021 due to the inflationary pressures on steel and cement prices, and the recovery in demand," the report said.

Knight Frank noted that rent levels have remained stable across markets as transaction volumes have grown since the beginning of 2024, while the supply scenario has remained comparatively tight.

"This rent growth trajectory has sustained in Q1 2025 (January-March) as well, with all markets responding to the higher occupier traction experienced during the quarter," the report said.

On the demand side, the leasing of warehousing spaces rose 50 per cent to 16.7 million (167 lakh) sq ft in January-March this year from 11.1 million (110 lakh) sq ft in the year-ago period.

These eight cities have a warehousing stock of 495 million (4950 lakh) sq ft.

Mumbai constituted 31 per cent of the total stock, with the NCR being a distant second at 22 per cent, the report outlined. PTI MJH MJH BAL BAL