Kolkata warehousing sector degrows 22pc in FY21: Knight Frank India

COVID-19 induced lockdowns had hit traditional industries which led to a degrowth of 22 per cent warehousing space demand in Kolkata in 2020-21, an international property consultant reported on Tuesday.

Among the major cities, only Chennai showed positive growth of four per cent while all other major cities also registered a decline of between 20 and 42 per cent.

''Kolkata witnessed warehousing transaction volume of 3.1 million sq ft in FY21 compared to 3.9 million sq ft of warehouse spaces leased in FY20, a 22 per cent YoY degrowth,'' a Knight Frank India report said.

''The report attributes this decline to the sudden lockdown during the first wave of the COVID-19 pandemic, which caught many occupiers off-guard. This led to a delay in the decision-making process, as occupiers adopted a wait and watch approach as the crisis unfolded,'' an official said.

Third Party-Logistics (3PL) is the largest demand driver for warehouses in Kolkata. The sector accounted for 47 per cent of the transactions during FY 2021, compared to 26 per cent in FY 2020, officials said.

The reliance on online shopping, brought upon by the pandemic, facilitated an environment for big logistics enterprises to expand their footprint and servicing.

E-commerce companies accounted for 28 per cent of the share of transactions for the same period, which is at par with FY 2020.