Hyderabad warehousing activity falls 30% in FY2021

Hyderabad: Hyderabad recorded warehousing transaction activity of 2.4 mn sq ft in FY2021, a 30 per cent YoY decline, according to the report titled 'India Warehousing Market Report 2021' by Knight Frank India, an International Property Consultant. This fall in warehousing absorption in the city is largely attributable to the pandemic-induced economic slowdown.

The e-commerce sector was the primary driver of warehousing demand in Hyderabad in FY2021 with a 54 per cent share in the total transactions pie. 3PL players accounted for 24 per cent of the FY2021 transactions followed by the FMCG sector with a 20 per cent share.

In terms of geography, with a 51 per cent share in the FY2021 total transactions pie, the Shamshabad cluster has seen a significant spike in activity compared to its 5 per cent share last year. Two transactions by Amazon totalling 0.1 mn sq m (1.1 mn sq ft) i.e. 46 per cent of the total FY2021 transaction activity is the reason for this huge jump in this cluster's demand share. The more popular Medchal cluster accounted for 48 per cent of the FY 2021 warehousing demand, a fall from its share of 87 per cent last year. The fall is a result of the skew caused by the two Amazon transactions in the Shamshabad cluster.