BENGALURU INDUSTRIAL DECEMBER 2018 MARKETBEATS€¦ · BENGALURU INDUSTRIAL DECEMBER 2018 9-15% 0.6...
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HIGHLIGHTS A Cushman & Wakefield Research Publication www.cushmanwakefield.com DATA INTO ACTION MARKETBEATS Warehousing rentals rise in select locations Demand for warehousing space remained healthy, driven by e-commerce and retail sectors during the latter half of 2018. Some of the top warehousing lessees include Decathlon and Flipkart in a logistics park in Soukya Road. In Soukya Road, rentals rose 10% on a YOY basis, led by heightened demand by the e-commerce sector. In Tumkur Road submarket, spanning from Nelamangala to Dabaspet, rentals rose 5% YoY, led by demand from the FMCG and electronics sector. Quality warehousing space of approximately 0.8 msf is currently under construction in proximity to Nelamanagala. National Developers looking to enter the city Prominent national developers are looking to enter the Bengaluru warehousing and logistics market, driven by the sector’s potential and the city’s strategic location driving demand in a post-GST scenario. At the same time, developers in the city are upscaling existing spaces by providing enhanced facilities, such as provisions for crane facility, clear height of 10-12 metres and above, fire hydrants, etc. Companies scouting for land parcels Land prices rose in the range of 9-15% YoY in Bommasandra. Companies are looking for land parcels in the Narsapura-Hoskote belt in the East, Attibele in the South, and Tumkur Road in the West, to develop integrated warehousing and industrial parks. BENGALURU INDUSTRIAL DECEMBER 2018 9-15% 0.6 msf 10% AVERAGE GROWTH IN LAND PRICE BOMMASANDRA (YOY) WAREHOUSING SPACE LEASED BY FLIPKART GROWTH IN WAREHOUSE RENT IN SOUKYA ROAD (YoY) 3.3% 5.0% 5.9% 7.3% 6.2% 7.2% 4.5% 7.5% 7.6% 2017 2019 Forecast 2018 CPI Growth Consumer Spending GDP Growth Source: Oxford Economics ECONOMIC INDICATORS Govt. Final Expenditure Growth 14.2% 2.6% 16.6% INDUSTRIAL AND WAREHOUSING RENTS 0.0% 5.0% 10.0% 15.0% 0 5 10 15 20 25 30 35 40 Bommasandra Industrial Area Peenya Industrial Area Bidali Industrial Area Hosur Road Nelamangala Whitefield/ Soukya Road Industrial Rent (H2 2018) Warehousing Rent (H2 2018) Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth
Transcript of BENGALURU INDUSTRIAL DECEMBER 2018 MARKETBEATS€¦ · BENGALURU INDUSTRIAL DECEMBER 2018 9-15% 0.6...
HIGHLIGHTS
A Cushman & Wakefield
Research Publication
www.cushmanwakefield.com
DATA
INTO
ACTION
MARKETBEATS
Warehousing rentals rise in select locationsDemand for warehousing space remained healthy, driven by e-commerce and retail
sectors during the latter half of 2018. Some of the top warehousing lessees include
Decathlon and Flipkart in a logistics park in Soukya Road. In Soukya Road, rentals rose
10% on a YOY basis, led by heightened demand by the e-commerce sector. In Tumkur
Road submarket, spanning from Nelamangala to Dabaspet, rentals rose 5% YoY, led by
demand from the FMCG and electronics sector. Quality warehousing space of
approximately 0.8 msf is currently under construction in proximity to Nelamanagala.
National Developers looking to enter the cityProminent national developers are looking to enter the Bengaluru warehousing and
logistics market, driven by the sector’s potential and the city’s strategic location driving
demand in a post-GST scenario. At the same time, developers in the city are upscaling
existing spaces by providing enhanced facilities, such as provisions for crane facility, clear
height of 10-12 metres and above, fire hydrants, etc.
Companies scouting for land parcelsLand prices rose in the range of 9-15% YoY in Bommasandra. Companies are looking for
land parcels in the Narsapura-Hoskote belt in the East, Attibele in the South, and Tumkur
Road in the West, to develop integrated warehousing and industrial parks.
BENGALURU INDUSTRIAL DECEMBER 2018
9-15% 0.6 msf 10%AVERAG E G ROW TH I N L AND
PRI CE BO MMASANDRA ( YO Y)
W AREHOUSING SPACE
L EASED BY F L I PKARTG ROW TH I N W AREHO USE RENT
I N SO UKYA RO AD ( Yo Y)
3.3% 5.0%
5.9% 7.3%
6.2% 7.2%
4.5%
7.5%
7.6%
20172019
Forecast2018
CPI Growth
Consumer Spending
GDP Growth
Source: Oxford Economics
E C O N O M I C I N D I C A T O R S
Govt. Final
Expenditure Growth 14.2% 2.6% 16.6%
I N D U S T R I A L A N D W A R E H O U S I N G
R E N T S
0.0%
5.0%
10.0%
15.0%
0
5
10
15
20
25
30
35
40
BommasandraIndustrial Area
Peenya IndustrialArea
Bidali IndustrialArea
Hosur Road Nelamangala Whitefield/Soukya Road
Industrial Rent (H2 2018) Warehousing Rent (H2 2018)
Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth
A Cushman & Wakefield
Research Publication
www.cushmanwakefield.com
DATA
INTO
ACTION
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Copyright © 2018 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
BENGALURU INDUSTRIAL MARKETBEATS DECEMBER 2018
SIGNIFICANT TRANSACTIONS
BUYER/LESSEE SELLER/LESSOR TYPE SUBMARKET SALE/LEASE AREA (SF)
Flipkart Allcargo Warehousing Soukya Lease 600,000
Decathlon Allcargo Warehousing Soukya Lease 800,000
ProConnect Rajdhani Group Warehousing Tumkur Road Lease 45,000
Ecom Express Individual Warehousing Tumkur Road Lease 30,000
UL India Individual WarehousingWhitefield
Lease 12,000
LAND RATES – DECEMBER 2018
SubmarketINR
MN/ACRE
US
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
KIADB Hitech Zone 26 0.37 0.33 0.0%
Narsapura 15 0.22 0.19 0.0%
Bommasandra* 152-100 216-1.42 1.90-1.25 9.4%-15.0%
Bidadi 35 0.49 0.43 14.3%
Dabaspet 25 0.35 0.31 0.0%
Harohalli 15 0.21 0.19 0.0%
Peenya* 174-152 2.47-2.16 2.17-1.90 11.1%-12.9%
Note: Land rates in Bommasandra and Peenya are provided in a range due to difference in rates along the highway and interiors.
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 70.5 and Euro 1 = INR 80.3
Rohan Sharma
Director
Research Services, India
Tel: +91 124 4695555
[16/01/2019 11:16 AM] Vaishnavi Bala/IND:Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 70.5 and Euro 1 = INR 80.3
