Rents go high in western and northern parts of Chennai

Stating that rentals continued to appreciate for several micro-markets across cities in India, a recent study has claimed that the Western corridor in Hyderabad observed the highest rental appreciation at 20 per cent on a half-yearly basis followed by the Western and Northern belts in Chennai; with rental increments of 8 - 11 per cent on half-yearly basis, CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, has announced the findings of its latest report ‘India Industrial and Logistics Market View, H2 2018’.

The findings of the report interestingly stated that the overall space take-up in the logistics and warehousing sector crossed 24 million sq ft. in 2018, an all-time high. Recording a growth rate of more than 40% compared to 2017, the report said that implementation of GST led to far reaching implications on industries, more so in the warehousing and logistics sector.  Overall in 2018, Mumbai, followed by NCR, Bangalore and Chennai dominated leasing, accounting for more than 70% of the space take-up.

The second half of 2018 witnessed robust leasing activity with about 14.3 million sq. ft. of space take up, a 46% increase on a half-yearly basis. Mumbai dominated leasing activity with a share of about 21%, followed by Delhi-NCR (20%) and Chennai (16%), the report, said. The overall demand for logistics and warehousing space was largely concentrated in Mumbai (21%), Delhi-NCR (20%) and Chennai (16%), closely followed by Bangalore (15%). Hyderabad and Kolkata accounted for 14% and 9% respectively; while the cities of Pune and Ahmedabad collectively held a 5% share in overall demand.

When compared on a half-yearly basis, almost every city witnessed a growth in leasing activity. While, Chennai witnessed a growth of about 104%, Hyderabad and Kolkata witnessed growth of 93% and 73% respectively. Other cities such as Mumbai (54%), Delhi-NCR (41%) and Pune (17%) also witnessed growth.