Lucknow witnesses 157 pc rise in warehousing transactions this fiscal: Report

Lucknow, Jul 6 : Knight Frank India, an international property consultancy, in their latest report , cited that Lucknow reported 1.05 million sq ft of warehousing transactions in 2021.
The city registered a steep increase of 157 per cent which can be attributed to the spike due to transaction activity from the e-commerce sector.
The report was published in ‘India Warehousing Market Report – 2021’ of Knight Frank India
Knight Frank India in a statement here on Tuesday said that with respect to industry-split of transaction volume, e-commerce has emerged as the largest driver for demand in 2021. The sector accounted for 75% of the region’s warehousing transactions compared to 37% in the preceding period. The FMCD sector accounted for 11% and 3rd-Party-Logistics (3PL) players for 8% in FY 2021, compared to 37% in FY 2020.
The report highlighted, approximately 2 million square feet of Grade A built-to-suit space is in the development pipeline on the Lucknow-Kanpur highway cluster, which is scheduled for completion in the next 12 months.
The Lucknow-Kanpur highway belt garnered a 67% share of the total transactions during 2021. The Lucknow-Kanpur highway cluster continues to attract most of the development and occupier interest in the market. Bijnor-Nadarganj cluster accounted for 33% of the total transaction volume in 2021.
Rents in newer locations of Lucknow-Kanpur highway, such as Asha Kheda – Kausheri – Sohramau range between Rs 183-226/sq m/month (Rs 17-21/sq ft/month) for Grade A type warehouses followed by Bijnor- Nadarganj cluster between Rs 161-194/sq m/month (Rs15-18/sq ft/month) for Grade B type warehouse facilities.
Mudassir Zaidi, Executive Director – North, Knight Frank India said, “The Lucknow-Kanpur highway cluster is expected to continue witnessing high market transactions, due to availability of reasonably priced large land parcels and good road connectivity. Growing demand for e-commerce and pharmaceutical space is likely to drive demand in the financial year 2022 too.”

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