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BENGALURU: Warehousing stock in India is expected to touch 380 million sq ft by 2024, due to increased logistics and storage requirements particularly in urban settings, according to property advisory JLL.

The covid-19 pandemic has caused a paradigm shift in consumer behavior from offline to online shopping, leading to an increased activity in sectors like e-commerce and third-party logistics.

About 27 million sq ft of warehousing stock was added during the January-September period, bringing the total stock to 265 million sq ft this year. The total stock of Grade A and B warehousing space in the top 8 cities increased at CAGR 16% from 2018 to September 2021.

“Growth in supply of Grade A spaces over the years is due to high demand for spaces with high specifications, citing increased inclination for high-grade structures and introduction of new players in the market. The Indian market has now firmly established itself for a more predominant position in Grade A space as opposed to Grade B spaces," said Yogesh Shevade, head - logistics and industrial, India, JLL.

Net absorption was hit in 2020 due to the pandemic, but started recovering in 2021 especially for Grade A spaces - from 56% last year to 73% in this year.

JLL said this shift is due to the high demand for quality spaces complying with covid-19 norms.

Of the total absorption till the September quarter, more than half the share is taken up by third-party logistics and e-commerce (55%).

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