India likely to lead warehousing space creation in Asia-Pacific region in 2023: Report

India is likely to lead the creation of warehousing in the Asia Pacific region next year by adding up to 30 million square feet space, over a third of total incremental additions in the region, a report said on Monday.According to the report by property consultancy Knight Frank, the country is expected to witness the highest warehouse and logistic supply growth in 2023 in the APAC Asia Pacific region, with an addition of 30 million square feet, which will over a third of the total logistics space of 86 million square feet expected in 2023 in the region.

India is likely to lead the creation of warehousing in the Asia Pacific region next year by adding up to 30 million square feet space, over a third of total incremental additions in the region, a report said on Monday.

According to the report by property consultancy Knight Frank, the country is expected to witness the highest warehouse and logistic supply growth in 2023 in the APAC (Asia Pacific) region, with an addition of 30 million square feet, which will over a third of the total logistics space of 86 million square feet expected in 2023 in the region. The report did not say what is the existing warehouse and logistic space in the country though.

Bengaluru, Delhi-NCR and Mumbai are expected to lead this addition, the report said, adding these cities will also lead rental growth in 2023.

Increasing demand from the manufacturing sector and expected resumption in space take-up by e-commerce players will drive rents in 2023, it noted.

While Bengaluru and Delhi-NCR will see the maximum growth in warehousing rentals in the range of 5-7 per cent on-year, Mumbai will see 4-6 per cent increase in 2023. However, Australia will lead the rental growth at an expected 12 per cent growth in 2023.

According to Shishir Baijal, chairman and managing director of Knight Frank India, market fundamentals will render a general balanced logistics market in Asia-Pacific, with rental growth set to moderate compared to the past two years.