Warehousing demand in Bengaluru exceeds new supply by 55% during 2018-22

Leasing of warehousing space in Bangaluru exceeded new supply by 55 per cent during 2018-22 period, resulting in lower vacancy level and increase in rental, according to India Sotheby's International Realty report.

Property consultant India Sotheby's International Realty on Wednesday released a white paper 'Ahead of The Curve - Bengaluru Warehousing'.

The IT city is likely to witness a surge in investment for development of premium warehousing park to meet growing demand for storage space from e-commerce and third-party logistics players, the paper said.

The consultant has taken inputs from real estate data research company CRE Matrix in the white paper.

"The demand-supply trend of the last five calendar years (2018-22) shows that demand has outstripped new supply by far, resulting in very low vacancy levels in existing warehousing parks and a decent growth in rentals," the consultant said.

The cumulative absorption of warehousing space in Bengaluru during the 2018-22 period stood