In Hyderabad, warehouse demand was fuelled by e-commerce and consumer durables occupiers in H2 2021. During H2 2021, the storage sector saw substantial demand from e-commerce (66 percent) and consumer durables (17 percent) tenants.
Leasing activity increased by roughly 15% in the second half of 2021, with 1.75 million square feet of space leased. Leasing activity increased significantly year over year, with 3.3 million square feet of space leased, up more than 60% from 2020.
The western and north-western corridors, particularly locations such as Patancheru, Edulnagulapally, Gundlapochampally, Medchal and Kallakal are expected to witness most of the traction in the short to midterm.
The State government has formulated a new policy for the logistics sector in the second half of 2021 to attract an investment of Rs 10,000 crore by 2026. Meanwhile, industrial and warehousing quoted rentals across all corridors of the city have witnessed a marginal increase of 3 to 5 per cent during H2 2021, when compared on a half-yearly basis.