Knight Frank India, an international property consultancy , in their latest report ‘India Warehousing Market Report – 2021’ cited that Jaipur recorded a total 1 mn sq ft of of warehousing leasing activity in FY 2021, representing an annual uptrend of 219%. The spike in annual demand can be largely attributed to the increased take-up from e-commerce occupiers who accounted for 32% of the space transacted during the year compared to 6% in FY 2020.
Of the total warehouse space leased in Jaipur, a major chunk was transacted in Mahindra World City with 48% whereas 19% in Vishwakarma Industrial Area followed by other locations. Demand from other sector companies (such as automobile component manufacturers) has remained steady at 27% in FY 2021, the same as in the previous year while the share of 3PL companies has dropped from 46% to 15% YoY in the current analysis period.
Mudassir Zaidi, Executive Director – North, Knight Frank India, “Demand from the e-commerce occupiers is likely to sustain based on the increasing number of inquiries from the sector at the close of the year. There also seems to be an inclination to take up comparatively smaller warehousing facilities closer to consumption hubs in the city to facilitate more efficient delivery and enable better stocking to deal with disruptive events like the COVID-19 pandemic.”
Despite an increasing incidence of concessions in rent terms such as higher rent-free period, average rents have stayed buoyant due to the turmoil caused by the COVID-19 pandemic. Demand from the e-commerce occupiers is likely to sustain based on the increasing number of inquiries from the sector at the close of the year. There also seems to be an inclination to take up comparatively smaller warehousing facilities closer to consumption hubs in the city to facilitate more efficient delivery and enable better stocking to deal with disruptive events like the COVID-19 pandemic.