India’s

WAREHOUSING
Sector Review
February 2019
 India’s Warehousing Sector
Comes of Age in 2018, Growth
Prospects in 2019 Look Brighter

The year 2018 saw Indian Warehousing Sector coming of age, outshining some of the conventional real estate asset classes
and attracting global investors. As per a study by JLL India Industrial Services, 2018 witnessed a 22% y-o-y growth in total
stock in Grade A & B warehousing space in top eight cities at 169 mn sq. ft. compared to 138 mn sq. ft., a year ago. Interestingly,
absorption clocked an unprecedented growth of 63% y-o-y growth to 31.8 mn sq. ft. last year from 19.7 mn sq. ft. in 2017. The
robust growth in absorption reflects demand outstripping supply and vacancies dropping below 10% level for the first time ever.
Here’s a snapshot of the key trends.

Logistics Sector India ranked

USD 160 bn
expected to grow to 44
USD 215 bn
by 2020
in World Bank’s
Logistics Performance
Index, 2018

First Container Movement Trial run of

on National Waterways 1 300+ km in WDFC
What Was New In 2018 (NW1) between Kolkata and (First Phase) near
Varanasi started Delhi NCR

Warehousing Stock (Cumulative Supply)

2018 2019

2017 65 88 2020

47 169
169 209 117
2016 138 258 2021
104 121
36 91 140 142
118 300
Pr
2015 oje 2022
82 158
cti

Stock CAGR (15-18)

30 165
on

104 Grade A 28.70% 344

74 179
Grade B 12.34%

Total 17.62%
 Demand Outstripping Supply

Grade A Takes The Centre Stage

2015 2016 2017 2018

4.9 5.6 9.9 14.1
10.3 13.3 19.7 31.8
5.3 7.6 9.8 17.7

Strong Demand / Stock CAGR (15-18) 2017 2018

Absorption Grade A 52.90% Absorption BTS* 30% 26%
Grade B 38.17% by Type Ready Built 70% 74%
Total 45.61% Total 100% 100%

* BTS = Built To Suit

Absorption By Occupier Type

Most Active Transaction Markets

Manufacturing Locations Of Focus

3PL / Logistics Increasing Focus On Tier Ii Cities

players takes the lead
in 2018, yet again
Ludhiana Logistics Rising Star

Delhi NCR
39%

Lucknow Guwahati
Absorption
By Occupier
14%

Type, 2018
Kolkata
%
26
7%

14%
Mumbai
Pune
Hyderabad
60%
of the demand /
absorption coming from
4 types of Occupiers
Bengaluru Chennai
3PL/ Logistics
Ecommerce Coimbatore
Auto & Ancillaries
FMCG/Retail
Others
 Investment Climate

NIIF + DP World

ustan Infralog
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Spa
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70
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2017 Platform Level 2018
Investment
2,023 Commitments 5,500

ace
USD Mn USD Mn

stSp
500

0
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g
30

ldin
Fir
rst

Ho
as
on
GL

USD

nd
e

ce

ek
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As

as
em
Manager T

Inves
tor/Partner

Project Level Investments 2018 Take Away

Investor Investee
Location
Morgan Stanley KSH (Pune)

Altico Renaissance (Mumbai)

HESS* Quality
Proprium Mussadilal Projects (Multiple)

Ascendas FirstSpace Sun Logistic Park (Chennai)

ESR Prakyyat (Mumbai)

IndoSpace Crystal Logistics Park (Ahmedabad)

LOGOS India Casa Grande Distripark (Chennai) Compliance Legal

Hindustan Infralog Continental Warehousing Corporation (Multiple)

*HESS = Health, Safety, Environment and Security

Way Forward…

High Growth Diverse Investment

Short to Options
Medium Term Streamlining (Cold Storage,
Supply Chain Agro-storage, FTWZ,
In-city etc.)
Strong Policy Technology
Support to fuel to drive
growth disruptions
 JLL Industrial Services

Only IPC
to offer 140+ 40+ 48
SCC * consulting work
delivered
Mn. sq. ft. BUA
transacted
team members
in 8 cities

425+
transactions
1,900+
acres of land
Services in

45+
concluded transacted cities

*Numbers as on Dec, 2018. *SCC = Supply Chain Consulting; BUA = Built-up Area

Our Core Expertise

Asset Strategy Planning & Investment Project

Management Transactions Sales Management

Service Offered Across Project Lifecycle

Manpower Entry Strategy Supply Chain Equity & Debt Programming

Allocation & Business Plan & Consulting Financing & Design
Budgeting Location Advisory
Tenant Platform Tendering
Operations & Market Research Representation Transactions &
Maintenance & Feasibility Investment Sales Construction
Acquisition & Management
Dispositions & Quarterly Market Dispositions Lease Rental
Renewals Update Discounting (LRD)
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment
management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing
spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients,
our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a
global workforce of 88,000 as of September 30, 2018. JLL is the brand name, and a registered trademark, of
Jones Lang LaSalle Incorporated. For further information, visit www.jll.com

About JLL India

JLL is India’s premier and largest professional services firm specializing in real estate. With an estimated
revenue for FY 2018-19 expected to be approx. INR 4,000 crore, the Firm is growing from strength to strength in
India for the past two decades. JLL India has extensive presence across 10 major locations (Mumbai, Delhi NCR,
Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and over 130 tier II & III
markets with a cumulative strength of close to 11,000 professionals.

The Firm provides investors, developers, local corporates and multinational companies with a comprehensive
range of services. This includes leasing, capital markets, research and advisory, transaction management,
project development, facility management and property & asset management. These services cover various
asset classes such as commercial, residential, industrial, retail, warehouse and logistics, hospitality, healthcare,
senior living and education.

JLL India won the Five-Star Award for ‘Best Property Consultancy at the International Property Awards Asia
Pacific 2018 -19’. The Firm was also recognised amongst the ‘Top 100 Best Places to Work in India’ in 2017
& 2018 in the annual survey conducted by Great Place to Work® and The Economic Times. It has also been
acknowledged as ‘Property Consultant of the Decade’ at the 10th CNBC-Awaaz Real Estate Awards 2015. For
further information, please visit www.jll.co.in

For business enquiries, please connect:

N Srinivas Yogesh Shevade Chandranath Dey

Managing Director Head Head - Industrial Consulting and
Industrial Services Industrial Transactions SCC Oversight
srinivas.n@ap.jll.com yogesh.shevade@ap.jll.com chandranath.dey@ap.jll.com
+91 98454 45495 +91 96197 11280 +91 90999 71598

jll.co.in

© 2019 Jones Lang LaSalle Property Consultants (India) Pvt Ltd. All rights reserved. All information contained herein is from sources deemed reliable; however,
no representation or warranty is made to the accuracy thereof.