INDUSTRIAL JUNE 2019 MARKETBEATS

7.0% 6.0% 22% RISE IN WAREHOUSING GROWTH IN INDUSTRIAL GROWTH IN LAND RATES IN R E N T S ( Y - O - Y) RENTS (Y- O - Y) BHIWANDI & TALOJA (Y - O - Y)

HIGHLIGHTS ECONOMIC INDICATORS Significant increase in land rates 2017 2018 2019 Forecast GDP Growth 7.2% 6.8% 7.0% Land values have increased significantly (22% y-o-y) in Bhiwandi and Taloja Industrial CPI Growth 3.6% 3.5% 3.4% areas on the back of increased demand from warehousing and industrial space providers. Consumer Spending 7.4% 8.1% 7.1% Similar growth was witnessed in and -Belapur Road submarkets as well Government Final 14.2% 9.2% Consumption Expenditure 15.0%

where annual growth rates were in the range of 15-20%. As the work on Source: Oxford Economics, Central Statistics Office International Airport commenced, warehousing and industrial space providers are looking for land parcels near to airport for expansion pushing the price upwards in Panvel. INDUSTRIAL AND WAREHOUSE RENTS – H 1 2 0 1 9 Meanwhile, strong demand from data center operators is driving price growth in Thane – Belapur Road. 50 30% 40 25% 20% Robust warehousing demand in Bhiwandi 30 15% 20 Bhiwandi remained the most sought-after location for warehousing space during the first 10% 10 half. 3PL, E-commerce, FMCG, Retail and Pharma companies were the most active. 5% 0 0% Bhiwandi Thane-Belapur Taloja Industrial Panvel (Palaspe JNPT & Pen Notable among them are , leasing 425,000 sf and Mahindra Logistics leasing Road Estate Phata) Road Patalganga Road 156,250 sf. Warehousing rents in Bhiwandi a have increased by 6% on an annual basis on Industrial Rent (H1 2019) Warehousing Rent (H1 2019) Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth the back of robust leasing activity. Demand for BTS warehousing options in on the rise. Source: Cushman and Wakefield Research Industrial demand remains stable The overall leasing activity in industrial sheds continues to remain stable in most of the locations. Rasayani-Patalganga and Bhiwandi have witnessed a moderate rental growth. A Cushman & Wakefield Rents are expected to remain range-bound in the short term as tenants have adequate Research Publication space options available in the market. Industrial belt of Taloja and Rasayani – Patalganga www.cushmanwakefield.com was the most preferred location by occupiers. MUMBAI INDUSTRIAL MARKETBEATS JUNE 2019

Rohan Sharma L A N D R A T E S - J U N E 2 0 1 9 Director Research Services Submarket INR MN/ACRE US$ MN/ACRE EURO MN/ACRE Y-O-Y Change Tel: +91 124 4695555 Bhiwandi 25 0.4 0.3 22.1%

[email protected] Thane-Belapur Road# 90 1.2 1.0 12.5%

Taloja Industrial Estate# 80 0.9 0.8 22.4%

Rasayani Patalganaga# 20 0.3 0.2 0.0%

Pen-Khopoli Road 16 0.2 0.2 0.0%

Note: Quoted land rates for serviced industrial land parcels are mentioned # Represents government owned serviced plots in industrial parks Percentage growth are in local currency; Y-O-Y – Year on Year Conversion Rate: US$1= 69.55 INR and Euro 1 = INR 79.10

SIGNIFICANT TRANSACTIONS

Buyer/Lessee Seller/Lessor Type Submarket Sale/Lease Area (sf) Mahindra Logistics Sonadevi Logistics Park Warehousing Bhiwandi Lease 156,250

Amazon BGR Complex Warehousing Bhiwandi Lease 425,000

A Cushman & Wakefield Research Publication

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