Mumbai has emerged as a frontrunner in India’s warehousing sector, achieving a remarkable transaction volume of 10.3 million square feet in 2024, according to Knight Frank India. This marks a significant 17% increase year-on-year, highlighting the city’s vital role as a distribution hub.
- Mumbai’s warehousing sector saw 10.3 million square feet of transactions in 2024.
- Retail and 3PL sectors were the primary drivers of this growth.
Strong Demand Fuels Record Growth in Warehousing Transactions
Mumbai’s warehousing market has set a new benchmark with a transaction volume of 10.3 million square feet in 2024, as reported by Knight Frank India. This reflects a robust 17% growth from 2023’s 8.8 million square feet. The demand for premium warehousing space has positioned Mumbai as a significant distribution hub within the country. Notably, the retail sector accounted for 30% of the total transactions, while the third-party logistics (3PL) sector contributed 27%. These sectors show a growing appetite for high-quality warehousing, underscoring the city’s logistical advantages. Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated, “The strong growth in transaction volumes reinforces Mumbai’s role as a key warehousing hub for domestic and international businesses.” The potential for expansion is evident, with an estimated 51.4 million square feet of additional capacity available, nearly five times the transaction volume recorded in 2024. This capacity is primarily in the form of underutilized land, suggesting a promising outlook for future demand.
Sectoral Insights and Emerging Trends in Warehousing
The dynamics of Mumbai’s warehousing market are evolving, with significant implications for various sectors. Manufacturing, excluding FMCG and FMCD, has seen a slight uptick in demand, rising from 21% to 22%. Retail’s share grew from 11% to 18%, reflecting the expansion of both physical and omnichannel retail networks. Moreover, FMCG transactions have doubled, rising from 1% to 2%, indicating a heightened demand for streamlined distribution centers. Bhiwandi continues to dominate as Mumbai’s largest logistics hub, accounting for 88% of total leasing in 2024, despite a decrease from 95% in 2023. Conversely, Panvel’s share increased from 5% to 12%, driven by a surge in demand for high-quality Grade A spaces and improved connectivity to key transport corridors such as JNPT. This trend suggests that occupiers are actively seeking alternatives within the Mumbai Metropolitan Region (MMR) due to land constraints in Bhiwandi.
Future Outlook: Expanding Opportunities in Warehousing
The future of Mumbai’s warehousing market looks promising, with stable rental trends valued at Rs 24.5/sq ft/month, despite shifting demand dynamics. Panvel, with its advanced infrastructure, commands higher rentals of Rs 26-30/sq ft/month in the Taloja micro-market and Rs 25-30/sq ft/month in the Palaspe-Goa road area. Experts predict that as demand evolves, the integration of automation and technology-driven warehousing solutions will become essential in enhancing supply chain efficiency. Baijal emphasizes, “The increasing influence of the manufacturing, FMCG, and retail sectors will drive steady market expansion.” With ongoing developments and a focus on sustainable logistics, Mumbai is poised to solidify its standing as a top warehousing destination in India.
