In 2024, the Delhi-NCR region recorded warehousing transactions totaling 9.2 million square feet, contributing to 16 per cent of the overall market share, according to a report released by Knight Frank India on Saturday.
The study highlighted that the region has the capacity to develop an additional 34.6 million square feet of warehousing space, nearly four times the transaction volume of 2024. This potential was attributed to the availability of unutilised land, which positioned NCR well for future expansion in the sector, reported IANS.
The region’s well-developed road infrastructure has played a crucial role in the expansion of its warehousing clusters. With strong connectivity between Delhi and its neighbouring industrial hubs, multiple logistics centres flourished over the years, catering to rising demand from various industries.
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Key Sectors and Major Warehousing Hubs
The third-party logistics (3PL) sector remained the dominant driver of warehousing transactions in NCR for 2024, followed by the manufacturing industry. Cluster-wise, the NH48/Kundli Manesar Palwal Expressway (KMP) continued to be the most significant logistics hub in the region.
In 2024, this corridor accounted for 77 per cent of total leasing activity, showing an increase from 66 per cent in 2023. Meanwhile, the Ghaziabad cluster also expanded its market presence, growing from an 8 per cent share in 2023 to 13 per cent in 2024.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that the region’s warehousing sector was poised for continued expansion. “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 said.
Despite fluctuating demand, NCR’s warehousing sector maintained stable rental trends, averaging Rs 21.3 per square foot per month, reflecting a 2 per cent annual increase. Among the region’s warehousing locations, Grade A warehouses in Greater Noida emerged as the most expensive, with rental values ranging from Rs 30 to Rs 35 per square foot per month, as per the report.
