Surge in demand of warehouses around Delhi NCR

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Post By By Buniyad


The need to operate out of a warehouse varies from business to business, depending on how much stock you have and how big your business is. 

Some of the largest occupiers of warehouses in Delhi/NCR include Amazon, Decathlon, Safexpress, Subros, among others. They hold a big share in strengthening the market transaction value of warehouses up to 6.5 mn sq ft. The entry of various private equity firms and foreign players in the Indian logistics market encourages quality supply, hence propelling demand.    

Below are some of the reasons why the demand for warehouses is seeing an upward trend lately: 

  • A warehouse allows ease of inventory management. Knowing how many goods you have and the number of shipments helps accurately plan for the future. 
  • An increase in e-commerce businesses is a major contributing factor to the requirement of a warehouse. E-commerce revenue in India is growing at a rate of 51% annually. As the requirement of goods increases, so does the service and storability that coincide. 
  • Business growth consists of several improvements, including better staffing levels. Operating out of a warehouse offers majors benefits regarding efficient staff management. 
  • Cost management is quite difficult for a large enterprise. Warehousing reduces overhead costs of services and improves further development in the long run. 
  • Considering the problem of the end level user, sometimes it takes hours to reach a specific product at the customer’s location. Having a centrally located warehouse can reduce the time and efforts for the same. In turn, offering a timely transit of goods. 
  • Particular goods require certain climate conditions. A warehouse provides climate control for these goods.
  • Having extensive security is vital for your production. It is eternally safe to store all goods inside a warehouse, providing safety and protection. 
  • Examining current AI generation, shareholders of an enterprise are moving towards purchasing automated warehouses. An automated warehouse offers a fully automated center incorporating automatic loading and unloading. It creates an efficient workflow and higher output levels. 

Delhi/NCR region mainly classifies warehousing space in two categories:

  1. Manufacturing led demand 
  2. Consumption led demand        

NCR is one of the largest manufacturing hubs in the country and accounts for the majority of the production activity in North India. Food processing includes dairy, rice mills, sugar mills, and alcoholic and non-alcoholic beverages have the largest share of the output in NCR. 

However, in terms of space requirements, the cement sector holds the leading position. 

NCR is the largest market in India with Delhi, Gurgaon, and Noida contributing the most. This retail spending not only includes traditional selling methods but also accounts for the spending by consumers through e-commerce. The retail sector has emerged as a major driver for the incremental warehousing space requirement in recent years. 

The demand for manufacturing-led warehousing space in NCR is concentrated primarily in the NH-8 and Ghaziabad clusters, with sectors such as auto and auto ancillary, cement, chemicals and pharmaceuticals, and food processing leading in terms of this demand. Noida holds the position of beneficial warehouses having a diverse range for different sectors. Affordability holds the main driving factor for warehouses in Noida. With the construction of new highways, Noida also started supply to UP and other states. This is increasing the opportunities required for warehouse infra development in Noida. The warehouse segment is the biggest beneficiary business in Noida. 

After getting an industry sector for warehousing and logistics, the circle rate for using a landmark for commercial purposes has been reduced to 30%. In Noida, the present land available to the warehousing sector costs an average of Rs 60,000 per sqm, which is reduced to 20,000 per sqm after this provision. This accelerated the increase of warehouse development in Noida and Greater Noida. Around 200 acres of the region have been converted into warehouses. It is said that NCR has the development potential of 75% more warehousing space in the region.  

If you are considering obtaining a warehouse around Delhi/NCR region, Buniyad is the best choice to look for the same. You can directly get in touch with one of their agents by using their quick connect feature. To visit their official website, click here.

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