The city recorded 5.1 million square feet warehousing transaction in FY23, registering a jump of 18per cent — the second highest growth rate among the top eight warehousing destinations in India.

Calcutta and its surroundings had recorded 4.3 million sq ft transaction in FY22, a research report published by property consultancy Knight Frank recorded.

With 5.1 million sq ft transaction in the last fiscal, Calcutta accounts for about 10 per cent of the total warehousing transactions, which stood at 51.3 mn sq ft, reported cumulatively in eight cities.

Nationally, the growth rate over fiscal 2021-22 was a meagre 0.1 per cent. Bangalore and Calcutta were the two major markets that showed growth.

Unlike past trends, third party logistics (3PL) players emerged as the top occupier sector accounting for 28 per cent of the total transaction volume in FY23. The manufacturing and retail sector occupiers commanded 24 per cent and 19 per cent, share respectively.

E-commerce witnessed a drop in its share from 26 per cent in FY22 to 12 per cent in FY23.

The demand for new warehousing facilities by the e-commerce sector has shrunk in FY23 after aggressive expansion since the arrival of the pandemic.

E-commerce players, especially grocery, online marketplaces and pharmaceuticals had experienced heightened demand in the past couple of years, and now with the return to normalcy, they are re-calibrating their warehousing needs.

National Highway 16 (old NH 6) accounted for the lion’s share with 64 per cent of the total warehouse space leased in FY23 in Calcutta.

The share of this cluster in the city’s warehouse leasing volume expanded from 59 per cent in FY22 due to large deals by retail, e-commerce and manufacturing occupiers in locations such as Amta Ranihati Road, Jangalpur, Dhulagarh and Uluberia.

The prominence of NH 16 in Calcutta continued to increase due to the availability of Grade-A spaces which is a key catalyst for new occupier transactions in this warehousing cluster.

However, the share of Dankuni and its suburbs moderated slightly from 36 per cent in FY22 to 33 per cent in FY 2023. The remaining 3 per cent was leased in the Madhyamgram-Barasat belt.

Commenting on the trend, Shishir Baijal, chairman and managing director of Knight Frank India, noted: “There has been a noticeable shift in the occupier groups within the warehousing market. 3PL providers and manufacturing companies have emerged as the primary players, indicating their increasing importance in the industry.”