Kol warehousing biz picks up pace: 1.1cr sqft leased in 2 yrs
Times of India | 14 March 2025
123 Kolkata: Kolkata has seen heightened interest in warehousing business lately, with 1.1 crore sqft leased in the past couple of years. It saw a 28% jump from 51 lakh sqft in 2023 to 65 lakh sqft in 2024. The sector got tailwinds with Mahindra Logistics and Safexpress expanding their footprint in the city, and e-commerce giants like Amazon, Flipkart and Swiggy leasing warehousing facilities.
In 2024, Kolkata's warehousing market recorded a rental value of Rs 24.8/sqft/month, which was higher than Mumbai (Rs 24.5/sqft/month), Chennai (23.9/sqft/month), Bengaluru (22.5/sqft/month), NCR (21.3/sqft/month), Hyderabad (20.7/sqft/month) and Ahmedabad (8.2/sqft/month). Only Pune had a higher rental value of Rs 26.6/sqft/month.
According to a study by international real estate consultancy firm Knight Frank India, Kolkata's warehousing market witnessed a shift in industry dynamics over the past year. The share of third-party logistics companies in total leasing activity surged from 22% in 2023 to 42% in 2024. E-commerce firms also expanded their presence, rising from 15% to 23% in the same period, driven by sustained consumer demand and the need for efficient last-mile delivery.
In contrast, the share of other manufacturing firms declined from 37% in 2023 to 13% in 2024. Retail leasing remained steady at 8%, while the FMCG and FMCD sectors saw slight increases in their leasing activity.
Warehousing leasing activity in Kolkata also witnessed shifts in cluster split transactions. Dankuni and its suburbs continued to dominate, accounting for 59% of total leased space, slightly down from 62% in 2023. National Highway 16 (old NH-6) also experienced an increase in leasing share from 34% in 2023 to 38% in 2024, driven by the availability of Grade A warehousing facilities and strong connectivity.
KFI chairman and managing director Shishir Baijal said Kolkata's warehousing market continues to show resilience and growth, fuelled by strong occupier demand, infrastructure developments, and supportive policy initiatives. "Despite challenges like the limited availability of Grade A space, the sector remains on a steady growth path. With rising demand from logistics players, ongoing infrastructure improvements, and a favourable policy environment, Kolkata is poised to maintain its status as a key warehousing hub in eastern India," he said.
Cushman & Wakefield reported that Old Delhi Road, an offshoot of the NH-19 micro market, emerged as an attractive warehousing location in 2024 with the availability of premium warehousing developments, proximity to NH-19, and a growing consumer base around the location.
"Kolkata's emergence as a major national warehousing and logistics destination over the past few years highlights a significant shift in the city's and region's real estate sector and puts it on a firm pedestal for future growth. Growth of the logistics industry added a major tailwind to the city's real estate, leading to diversification from the traditional office, residential, and retail sectors with major implications for economic development and job creation," said Cushman & Wakefield head (East) Santanu Ghosh.