In a significant boost for Kolkata’s logistics and warehousing sector, the city leased over one million square feet of warehouse space in the first half of 2024. This marks a 20% increase over the latter half of 2023, signaling robust growth and escalating demand in the region.
Key Drivers of Growth
The surge in leasing was driven by third-party logistics (3PL) companies, which claimed 44% of the total volume. E-commerce and retail sectors followed, contributing 18% and 17%, respectively, highlighting the diverse nature of Kolkata’s logistics market.
Hotspot: NH16 Submarket
A large portion of leasing activity centered on the NH16 submarket, particularly along Amta-Ranihati Road. The area has become a hotspot for warehouse development, attracting significant interest due to its strategic location.
kolkata warehouses Supply and Development in Kolkata
To meet rising demand, new warehouse supply in Kolkata reached 0.6 million square feet in the first half of 2024. The city saw both speculative developments and built-to-suit facilities, tailored to meet tenants’ specific needs, reflecting an increasing demand for customized spaces.
Rising Rentals
Kolkata also witnessed a 4-5% year-over-year increase in warehouse rental rates. This rise is indicative of the strong demand and limited availability of prime spaces, leading landlords to adjust prices accordingly.
Kolkata’s warehouse leasing market is expanding rapidly, with sectors like logistics, e-commerce, and retail driving growth. The strategic concentration of leasing activity in areas like the NH16 submarket, coupled with rising rental rates and new developments, solidifies Kolkata’s role as a critical player in India’s logistics industry. Looking ahead to the second half of 2024, the city’s warehouse market is expected to continue its upward trajectory, offering new opportunities for investors and businesses alike.
