The warehouse space leasing has witnessed a growth of 77 per cent year-on-year from April 2018 to March 2019 period, according to a report launched by a real estate consulting firm Knight Frank here on Wednesday.

The report titled, 'India Warehousing Market 2019' mentioned that the manufacturing sector which accounts for 80 per cent of warehousing market is estimated to be at 68 million sqm (739 million sq. ft) in 2019 and is expected to grow to 86 million sqm (922 million sq. ft) by 2024.

"Organised warehousing developers are steadily seeing more demand from occupier groups and sectors like e-commerce, retail, manufacturing etc. The string of policy and regulatory reforms unveiled by India in recent times such as implementation of GST, Make in India has accelerated the entry of international institutional players in Indian warehousing and logistics park," said Balbir Singh Khalsa, National Director, Industrial and Asset Services, Knight Frank India.

Demand of large sized warehousing in the tier 2 cities is also on the rise and is showing a big growth potential, he added.

According to the report, Kolkata witnessed highest year-on-year surge with 191 per cent in the warehousing leasing volume followed by Bengaluru and Hyderabad which witnessed growth of 147 per cent and 96 per cent respectively.

While cities such as Coimbatore, Guwahati, Ludhiana, Nagpur and Lucknow are also gaining prominence in terms of the growing demand for warehousing space.

The report further mentioned that 83 per cent of the investments in warehousing asset went into new developments while 10 per cent was made into ready assets and the remaining 7 per cent was into combination of ready and under construction assets.

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