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Analysis of the warehouse rental market in India

Analysis of the warehouse rental market in India Analysis of the warehouse rental market in India
Release date 04.02.2019
Number of pages 48
Formats DOCX, PDF
Cost 250.000 ₹

The relevance of research

The object of this study is the rental of warehouse real estate, both newly commissioned objects during the analyzed periods, and those built earlier.


Purpose of the study

Analysis of the state of the warehouse real estate market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the warehouse real estate market


Content

Part 1. An overview of the Indian warehouse rental market

1.1. Definition and Characteristics of the Indian Warehouse Rental Market
1.2. Dynamics of the volume of the Indian warehouse rental market, 2013-2017, 
1 floor 2018
1.3. Market structure by type of service provided in India
1.4. Structure of the warehouse property rental market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity

Part 2. Competitive analysis in the warehouse rental market in India

2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players

Part 3. Analysis of warehouse rental consumption

3.1. Estimation of the volume of warehouse rental consumption per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis

Part 4. Assessment of factors of investment attractiveness of the market

Part 5. Forecast for the development of the warehouse rental market until 2022

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators


Research excerpt

Part 1. An overview of the Indian warehouse rental market
1.1. Definition and Characteristics of the Indian Warehouse Rental Market
Warehouse real estate - warehouse complexes and premises, which are mainly intended for the storage of materials and products. Warehouse real estate belongs to the category of commercial real estate. Warehouse development is one of the youngest types of development…
The object of this study is the rental of warehouse real estate, both newly commissioned objects during the analyzed periods, and those built earlier. In this study, when analyzing the supply and commissioning volumes of warehouse real estate, high-quality warehouse real estate (class A and B) is understood. Consider the characteristics and features of the warehouse rental market in the Indian market.
Warehouse real estate development is an important and attractive area of ​​activity, as well-thought-out logistics is an important component of the success of a commercial enterprise. The yield of warehouse properties is traditionally higher than that of office and retail real estate, however, this type of real estate is more difficult to develop the project of the investment object itself and is associated with more serious commercial risks … 
Diagram 1. Dynamics of the total supply of the warehouse real estate market, 2013 - 2017, 1st half of 2018, mln sq. m.
 

1.2. Dynamics of the volume of the Indian warehouse rental market, 2013-2017, H1 2018
Let us consider the dynamics of the volume of the warehouse real estate rental market, the volume of supply of warehouse real estate for rent in real terms, the average annual rental rates in and regions of India, the level of vacancy at the end of the year in and regions of India.
...
The assessment of the volume of supply of the market for the lease of warehouse real estate was carried out by GidMarket on the share distribution of transactions between the purchase and lease of new and existing high-quality warehouse space. 
...
Diagram 3. Dynamics of the volume of supply in the warehouse real estate rental market, 2013 - 2017, H1 2018, mln sq. m
 

...
The dynamics of the volume of the warehouse rental market is significantly influenced by 
...

1.3. Market structure by type of service provided in India 
...

1. 4. The structure of the warehouse property rental market in the Union Territories
...
In the structure of the provision of warehouse real estate rental services, …
Diagram 6. The structure of the provision of warehouse real estate rental services in India by Union Territories, % 
 

1.5. Assessment of current trends and development prospects of the studied market

...

1.6. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, demand.
Economic forces
In the warehouse real estate market, a group of economic factors has the strongest influence, determining potential development resources not only for developers, but also forming trends on the demand side. Dynamics of development of wholesale and retail trade, production, logistics, consolidation processes determine the active demand for warehouse real estate.
...
Retail turnover
...
Dynamics of e-commerce
E-commerce, although it remains a small segment in the overall retail industry…
In view of the fact that non-food products are mostly sold through the Internet channel, it is advisable to consider the share of Internet commerce directly in the volume of non-food trade in India.
...

GDP dynamics determines the general vector of the country's economic development
According to the results of 2017, the dynamics of GDP is positive, but not high, which indicates the revival of business processes in the country. Change in the vector of GDP dynamics in 2017 has a positive impact on the market at the macroeconomic level, which leads to the growth of dependent markets.
According to the results of seven months of 2018, India's GDP growth amounted to 101,6%. The dynamics are positive, but not high. In general, the positive influence of the factor.
Exchange rate instability
The depreciation of the national currency against the US dollar and the Euro has …
Dynamics of industrial production
The Industrial Production Index shows…
Availability of borrowed funds
...
The weighted average interest rates on loans provided by credit institutions to non-financial institutions in rupees are almost …
Demographic factors
Population size and growth
...
Over the past eight years, India's population has been showing …
The level of real incomes of the population
Real disposable money income per capita is income minus mandatory payments, adjusted for inflation. This factor determines the level of effective demand of buyers ...
...
Increasing urbanization
The migration influx in large cities leads to an additional supply of labor, a change in the structure of the day towards an increase in working hours and time spent on the road from work, which reduces the amount of free time and stimulates …
Political factors
Foreign policy relations
This is the most important of the group of political factors that determines the vector of export development, the geography of raw materials supplies...
Tax Law Changes
Article 378.2 ""features of determining the tax base, calculation and payment of taxes in relation to real estate objects"" was introduced in the Tax Code of India. In accordance with this article, the tax base is changed from the average annual value of property to the cadastral value of real estate as of January of the year of the tax period for individual objects.
Tax preferences, concessional lending
In India, programs are being implemented to support entrepreneurship and develop domestic production. However, for ordinary entrepreneurs, their availability remains in question. 
""Administrative barriers"" that arise when obtaining permits for construction and connection to communications, when putting objects into operation and changing the purpose of land plots, etc. 
The presence of such barriers slows down the development of the construction complex, and, consequently….
Technological factors
The cost of construction in the regions is higher than in
...
Transport infrastructure (state of federal and regional roads)
Improvement of construction technologies
...
Also, new construction technologies make it possible to make the warehouse facility more versatile and liquid for owners and lessors. However, it should be borne in mind that if the object is located in a significantly worse location, then no amount of the most advanced technologies will help make it profitable.
Reducing the construction time of warehouses
...
In general, the impact of macro factors on the warehouse rental market in India is currently being assessed…
...

1.7. Analysis of sectoral indicators of financial and economic activity
...
Table 3. Profit (loss) from the sale of leased warehouse property in the Union Territories of India, 2013-2017, million Rs. 
 

...
Pre-tax profit margins in warehouse rentals are above the Indian average…
...
The absolute liquidity ratio shows what proportion of short-term debt obligations will be covered by cash and cash equivalents in the form of marketable securities and deposits. For Indian companies, the normative value of the absolute liquidity ratio is within …
...

Part 2. Competitive analysis in the warehouse rental market in India
2.1. Major players in the market 
The largest operators in the warehouse rental market include …
...

2.2. Market shares of the largest competitors
According to GidMarket, based on data on the area of ​​warehouse space provided by the largest companies for rent in India, the leader in the warehouse rental market in India is …
...
Diagram 18. Shares of the largest competitors in the warehouse rental market in 2017 
 

2.3. Profiles of major players
...
Diagram 19. Dynamics of the total revenue of the largest operators of the warehouse real estate rental market (TOP-5) in India, 2013-2017
 

According to official statistics and disclosed financial statements by market operators…
...

Part 3. Analysis of warehouse rental consumption
3.1. Estimation of the volume of warehouse rental consumption per capita
...
Diagram 20. The volume of consumption of warehouse real estate rent per capita, 2013-2017, H1 2018, Rs./person
 

3.2. Market Saturation and Estimated Market Potential in India
Despite the low dynamics of the commissioning of new warehouse space in 2016-2017, it is premature to talk about the approach to saturation of the warehouse rental market...
...

3.3. Description of consumer preferences 
...
The use of warehouse real estate rental services allows operators to build their marketing policy in a changing market more flexibly. If there is a need to increase, or vice versa, reduce, storage space by renting, it is easier and faster to optimize the costs of warehousing.
Consumption in the warehouse rental market is traditionally formed by distribution and trading companies, representatives of online retail, logistics companies, and manufacturing companies. 
...
Due to the fact that retail and distribution determine more than half of the volume of demand for warehouse real estate, the requirements necessary for the storage of food products are often imposed on warehouse facilities: enclosing structures without voids from materials that are not destroyed by rodents; solid and void-free canvases of external doors, gates and manhole covers; devices for closing openings of channels of ventilation systems; 
Temperature, relative humidity and air velocity in warehouses must comply with the requirements of the storage technology for the corresponding type of cargo.
High demands on the part of consumers are made to fire extinguishing systems, security and safety systems, and more and more attention is paid to energy efficiency indicators.
When concluding a warehouse lease agreement, as a rule, short-term lease agreements (1-3 years) and long-term lease agreements (5 years or more) are concluded. 
...

3.4. Price analysis
...
The lower price elasticity in the regions of India for warehouse real estate rental services is due to the lower level of market saturation in the regions relative to the capital market, the lower level of warehouse real estate vacancy in the regions of India.
...
Table 15. Average rental rates for warehouse property across the Union Territories
 

Part 4. Assessment of factors of investment attractiveness of the market
...

Part 5. Forecast for the development of the warehouse rental market until 2022
...
The development of the warehouse rental market is largely due to the dynamics of economic development in India as a whole.
...

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...


Diagrams

Diagram 1. Dynamics of the total supply of the warehouse real estate market, 2013-2017, H1 2018, mln sq. m.
Diagram 2. Dynamics of the volume of the warehouse real estate rental market, 2013 - 2017, 1st half. 2018, million Rs.
Diagram 3. Dynamics of supply volume in the warehouse real estate rental market, 2013 – 2017, H1 2018, mln sq. m.
Diagram 4. Warehouse vacancy rate in and regions of India, 2013-H1 2018, %
Diagram 5. Structure of the warehouse real estate rental market by type, %
Diagram 6. The structure of the provision of warehouse real estate rental services in India by Union Territories, %
Diagram 7. Retail trade turnover in comparable prices, % to the previous year, 2007- 8 months 2018
Diagram 8. Dynamics of e-commerce in India, 2013-2017, billion Rs.
Diagram 9. Dynamics of India's GDP, in 2012-2017, Jan. - July 2018 % to the previous year
Diagram 10. The dynamics of the US dollar against the rupee, Jan. 2014 - Oct. 2018, Rs. for 1 US dollar
Diagram 11. Industrial production index of India, 2013 - 9 months. 2018, in % of the previous year
Diagram 12. Population change in India, 2010-2018
Diagram 13. Dynamics of real incomes of the population of India, 2010 - 2017, 9 months 2018
Diagram 14. Profitability of profit before tax (profit of the reporting period) in the field of rental of warehouse real estate in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 15.Current liquidity (total coverage) in the field of warehouse real estate for 2013-2017, times
Diagram 16. Business activity (average term of receivables turnover) in the field of warehouse real estate lease, for 2013-2017, days days
Diagram 17. Financial stability (security of own working capital) in the field of warehouse real estate rental, in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 18. Shares of the largest competitors in the warehouse rental market in 2017
Diagram 19. Dynamics of the total revenue of the largest operators in the warehouse rental market (TOP-5) in India, 2013-2017
Diagram 20. The volume of warehouse real estate rental consumption per capita, 2013-2017, H1 2018, Rs./person
Diagram 21. Availability of warehouse quality real estate, 2013- 1st half. 2018, sq. m/1000 people
Diagram 22. Forecast of the volume of the warehouse property rental market in 2018 - 2022, million Rs.


Tables 

Table 1. Weighted average interest rates on loans provided by credit institutions to non-financial institutions in rupees Jan. 2012-Jan. 2018, % per annum
Table 2. STEP-analysis of factors affecting the warehouse rental market
Table 3. Profit (loss) from the sale of warehouse property lease in the Union Territories of India, 2013-2017, million Rs.
Table 4. Gross profitability of the warehouse rental industry in comparison with all sectors of the Indian economy, 2013-2017, %
Table 5. Absolute liquidity in the field of rental of warehouse real estate in comparison with all sectors of the Indian economy, 2013-2017, times
Table 6. The main companies participating in the warehouse real estate rental market in 2017
Table 7. Basic information about the participant of the XXX warehouse rental market
Table 8. Basic information about the participant of the XXX warehouse rental market
Table 9. Basic information about the participant of the XXX warehouse rental market
Table 10. Basic information about the participant of the XXX warehouse rental market
Table 11. Basic information about the participant of the XXX warehouse rental market
Table 12. Key transactions in the warehouse rental market in 2016
Table 13. Key transactions in the warehouse rental market in 2017
Table 14. Consumer Price Indices for Warehouse Property Rental in India in 2013-2017, H1 2018, %
Table 15. Average rental rates for warehouse real estate in the Union Territories
Table 16. Assessment of factors of investment attractiveness of the warehouse real estate rental market


Research benefits

The most complete presentation of information in an accessible and visual form. When ordering a marketing research, you can be sure of the accuracy and reliability of market information, which allows you to make informed management decisions and not miss the attractive opportunities that the market provides.


Directions for using the results of the study

To bring a new product to the market, organize a new production, correct the current strategy of the company or develop a new one, to make various decisions


Recommended

For senior and middle managers, marketing specialists, investors, business owners


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