Delhi-NCR has potential to develop additional 34.6 mn sq ft warehousing space: Report

New Delhi, March 22
Delhi-NCR recorded 9.2 million square feet (mn sq ft) of warehousing transactions in 2024, which is 16 per cent of the overall market share, a report showed on Saturday.

NCR’s warehousing market has the potential to develop an additional 34.6 mn sq ft of warehousing space, nearly four times the 2024 transaction volume. This capacity is available as unutilised land and is well positioned to meet future demand, according to the Knight Frank India report.

The region’s extensive road network, connecting Delhi with its surrounding cities and industrial hubs, has led to the growth of multiple warehousing clusters over the years.

In terms of industry wise transaction volume, the third-party logistics (3PL) sector led NCR’s warehousing transactions in 2024, followed by the manufacturing sector.

In terms of cluster split transactions, NH48/Kundli Manesar Palwal Expressway (KMP) remains NCR’s dominant logistics hub, accounting for 77 per cent of total leasing in 2024, increasing from 66 per cent in 2023.

Ghaziabad cluster has also increased its share from 8 per cent in 2023 to 13 per cent in 2024.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, with the continued expansion of key infrastructure projects and rising demand from various sectors, the NCR warehousing market is expected to see sustained growth soon.

“A resurgence in e-commerce demand, coupled with the growth of complementary sectors such as q-commerce, will further fuel the region's warehousing activity over the next 2-3 years,” he noted.

NCR’s warehousing market has maintained stable rental trends valued at Rs 21.3 per sq ft per month, recording an average growth of 2 per cent despite shifting demand dynamics.

The grade A warehouse of Greater Noida deems as the most expensive NCR rental market with Rs 30-35 per sq ft per month, said the report.