Demand for warehouses to go higher: Knight Frank study
Since the economy is now becoming stable, and more jobs are being created, the retail therapy is increasing. In the last few years due to the global economic downturn, the population had reduced spending as the job security had reduced and the pay packets remained the same. However the spending is increasing again with the economy slowly taking a positive turn.
The realty brokerage firm Knight Frank on Monday said demand for warehousing is estimated to grow at 9 % a year, over the next five years and would require investments of up to Rs 6,000 crore each year till 2019.
A cumulative 520 million square feet of space, over and above the already existing 919 million square feet, will be required over the next five years. The firm feels that there are ample land parcels available to take care of the demand.
The study also mentioned that among the verticals, requirements of the Exim (Export Import Trade) trade will experience the most demand for the warehousing space, followed by the consumption and the manufacturing sectors.
It is expected that the demand from Exim trade will grow at 13 % per annum, while the same for consumption will grow at 9 % and manufacturing at 8 %.
Source- The Hindu Business Line
Knight Frank India, Knight Frank Investment Advisory, Real estate consultants Knight Frank, realty brokerage firm Knight Frank
