Udyamee, Ahmedabad:
Gujarat’s warehousing market is witnessing unprecedented expansion, with Ahmedabad, Surat, Vadodara, and Vapi collectively recording 8.26 million square feet (mn sq ft) of transactions in 2024. This marks a 27% year-on-year (YoY) growth from 6.52 mn sq ft in 2023, according to Knight Frank India’s latest report.
Ahmedabad continues to dominate the market, with transactions reaching 5.8 mn sq ft in 2024, reflecting a 25% YoY growth. The city’s warehousing demand is largely fueled by the manufacturing sector (excluding FMCG and FMCD), which accounted for 49% of the total transactions. Notably, the Aslali-Kheda belt accounted for 36% of the total transactions, followed closely by the Changodar-Bagodara belt at 35%. Additionally, rental rates in Ahmedabad have increased by 3% YoY, with Grade A warehouses commanding rents between INR 16-25 per sq ft/month in key industrial clusters.
According to Shishir Baijal, Chairman & Managing Director of Knight Frank India, “Government initiatives to boost manufacturing, along with strong infrastructure support, have significantly enhanced Ahmedabad’s warehousing demand. Surat’s rapid expansion is a testament to its rising industrial prominence.”
Surat emerged as the fastest-growing warehousing market in the country, recording a staggering 98% YoY growth. Transactions nearly doubled from 0.8 mn sq ft in 2023 to 1.6 mn sq ft in 2024. The city’s warehousing expansion has been fueled by the rising demand from the manufacturing sector, which saw its share rise from 34% to 72% in just one year. The Kosamba-Palsana belt dominated the transactions, accounting for 88% of the total activity. Infrastructure improvements, including the development of new industrial parks and enhanced road connectivity, have further boosted the region’s attractiveness.
Vadodara and Vapi: Mixed Performance
Vadodara’s warehousing transactions remained stable at 0.46 mn sq ft, a marginal 2% decline from 2023. The market is witnessing a shift towards higher-quality Grade A warehouses, which accounted for 75% of total transactions, up from 47% in the previous year. The Savli-Jarod-Halol belt remained the primary warehousing hub, contributing 81% of the city’s total transactions.
Vapi, however, saw a decline of 24% YoY, with transactions dropping from 0.55 mn sq ft in 2023 to 0.42 mn sq ft in 2024. Limited new developments contributed to this slowdown, but the shift towards high-quality warehouses is a positive trend for the region. The Vapi-Bhilad belt remained the dominant hub, with rental values ranging from INR 21-26 per sq ft/month, reflecting a preference for modern logistics facilities.
Industry Insights and Outlook
With continued infrastructure investments and a strategic location, Gujarat’s warehousing sector is poised for sustained growth, making it one of India’s key logistics hubs. Additionally, demand for built-to-suit warehouse solutions is rising, particularly in Vadodara and Vapi, where ready-to-move-in inventory remains limited. The adoption of automation and smart warehousing technologies is also gaining traction, enhancing operational efficiency across major clusters.
