Third-party clients fill warehouses as e-commerce inflows wane: Knight Frank

While the e-commerce sector registered tepid demand for warehousing in FY23, third-party logistics (3PL) players followed by manufacturing and retail sectors drove the market, a new report by property consultancy Knight Frank India revealed on Tuesday.

As warehousing activity in the top eight markets of India including Mumbai, NCR, Bengaluru, Pune, Kolkata, Hyderabad, Chennai and Ahmedabad sustained record-high transactions reaching 51.3 million square feet (msf) in FY23, the 13 secondary markets studied by the consultant registered a 15 per cent growth – at 15.75 msf – on the back of increased traction. The compound annual growth rate (CAGR) from FY17-23 has been pegged at 24 per cent.