Hyderabad’s warehousing sector witnessed transactions of 3.5 million square feet in 2024, according to the latest report by Knight Frank India. The manufacturing sector emerged as the largest contributor, accounting for 34% of the total transactions, followed by the retail sector at 33%.
The Shamshabad cluster, strategically located along the Bengaluru-Hyderabad Highway, emerged as Hyderabad’s key warehousing and industrial hub, accounting for 47% of the total transactions in 2024. Major industrial zones within this cluster, including Shamshabad, Aerotropolis, Srisailam Highway, Bongloor, Kothur, and Shadnagar, saw high demand, driven by sectors such as seed processing, third-party logistics (3PL), and electronics manufacturing, the report said.
Key drivers of warehousing demand in 2024 included industries such as renewable and sustainable energy, automotive, and auto-ancillary, bolstered by government initiatives like Make in India and the Production Linked Incentive (PLI) schemes. The retail sector, particularly e-commerce, FMCG, and consumer durables, also played a role in warehouse leasing.
In terms of rental values, Hyderabad’s warehousing market recorded an average rent of ₹ 20.7 per square foot per month in 2024, reflecting a year-on-year growth of 1%. The highest rental values for Grade A warehouses were observed in the Patancheru Industrial Area cluster, where rates ranged between ₹ 24 and ₹ 28 per square foot per month.
The Medchal, Patancheru, and Shamshabad clusters witnessed varying rental trends based on location and warehouse grading. In the Medchal cluster, rental rates for Grade A warehouses ranged from ₹22 to ₹25 per square foot per month, while in the Patancheru cluster, rents peaked at ₹28 per square foot per month. The Shamshabad cluster recorded Grade A warehouse rentals between ₹22 and ₹25 per square foot per month.
“With sustained policy support, rising occupier demand, and strong infrastructure, Hyderabad’s warehousing sector is poised for continued expansion, attracting further investment in the years ahead,” said Shishir Baijal, chairman and managing director, Knight Frank India.
Published – March 12, 2025 08:33 pm IST
