Chennai recorded a 29 per cent year-on-year (YoY) development in warehousing transactions volumes in 2024, the best amongst India’s high eight markets, in line with a examine by Knight Frank India, a famend worldwide property consultancy agency. The town noticed 5.8 million sq ft (mn sq ft) of transactions, largely pushed by the manufacturing sector. Chennai additionally registered the second-highest leasing volume in manufacturing, contributing 14 per cent of the overall share throughout these markets.
Chennai has a growth potential of 40.7 mn sq ft to accommodate future demand, which is seven instances the annual (*29*) volume in 2024. This capability is well-positioned to assist rising warehousing wants within the close to future, says a launch.
The manufacturing sector dominated industry-wise (*29*) volume, accounting for 54 per cent of complete demand and recording a 103 per cent YoY enhance in transacted volumes. This vital development reinforces Chennai’s place as a number one manufacturing and industrial hub.
The retail and e-commerce sectors additionally skilled substantial development, with retail transactions growing by 94 per cent YoY, whereas e-commerce noticed an exponential 1,158 per cent YoY rise (from a low base final yr), pushed by rising shopper demand and last-mile supply wants. In the meantime, 3PL demand remained regular, reinforcing its vital position in Chennai’s logistics ecosystem.
With respect to cluster cut up of transactions, the Sriperumbudur-Oragadam cluster consists of storage services located between the Grand Southern Trunk Highway (GST Highway/Chennai-Trichy Freeway) within the south and Poonamallee Excessive Highway (Mumbai Freeway) within the west. It additionally contains the Mannur-Thiruvallur belt, masking Mevalurkuppam, Mappedu, Mannur, Pollivakkam, and Thiruvallur.
This cluster serves as the first hub for the automotive {industry} and its ancillary manufacturing items. In 2024, it accounted for 61 per cent of Chennai’s complete warehousing transactions, with all transactions within the Sriperumbudur-Oragadam cluster predominantly pushed by the manufacturing sector. The NH 16/GNT Highway-Periyapalayam cluster contributed 33 per cent of Chennai’s complete warehousing transactions, with the manufacturing and 3PL sectors main (*29*) exercise on this area, the discharge mentioned.
Shishir Baijal, Chairman and Managing Director, Knight Frank India mentioned, “As a outstanding manufacturing hub, Chennai performs a vital position in India’s financial system, notably within the automotive, electronics, and engineering sectors. Past vehicles, its manufacturing ecosystem contains electrical and digital parts, fabrication, plastic injection moulding, and numerous engineering merchandise.
Chennai has turn out to be a main location for warehousing, witnessing strong leasing exercise that displays sustained demand. The sector’s outlook stays optimistic, supported by infrastructure enhancements and authorities initiatives.”
In 2024, the warehousing market of Chennai witnessed a rental worth at ₹ 23.9/sq/ft/per month, reflecting a YoY development of two per cent which in 2023 was ₹23.4 /sq/ft/per month.
Chennai’s warehousing market reveals various land charges and rental costs, pushed by town’s sturdy industrial exercise. In 2024, land charges have risen considerably. Madhavaram and Maraimalai Nagar command the best land charges, whereas Grade A leases are at their peak in Sriperumbudur, Oragadam, Irungattukottai, areas surrounding Mahindra World Metropolis, and Maraimalai Nagar.
By way of rental worth, charges for Grade A warehousing area in Maraimalai Nagar within the GST Highway-Maraimalai Nagar Cluster recorded the rents within the vary of ₹27 – 29sq ft/month, adopted by In and round Mahindra World Metropolis which recorded hire within the vary of INR 24 – 28/sq ft/month, the discharge mentioned.
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