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Surat has registered the highest year-on-year growth in warehousing transactions across India during calendar year 2024. According to Knight Frank India's latest report, the city added 1.6 million sq ft of warehousing space, representing a 98% increase over the previous year. Key transactions by companies such as Reliance Retail, Whirlpool, Waaree Energies, Goldi Solar, and Kohler India were instrumental in this surge. Meanwhile, Ahmedabad maintained its position as Gujarat's primary warehousing hub, recording 5.8 million sq ft of transactions, with contributions from major manufacturing and FMCG players. Despite declines in Vadodara and Vapi, the state's warehousing market continues to demonstrate robust growth overall.
Warehousing transactions involving prominent firms such as Reliance Retail, Whirlpool, Waaree Energies, Goldi Solar, and Kohler India have propelled Surat to achieve the highest year-on-year growth in the country. During calendar year 2024, Surat witnessed the addition of 1.6 million sq ft of warehousing space, reflecting a remarkable 98% growth in comparison to the previous year, as per Knight Frank India's latest assessment of the warehousing sector. Advertisement
In 2024, the cities of Ahmedabad, Surat, Vadodara and Vapi collectively accounted for 8.26 million sq ft (msf) of warehousing transactions. This represents a 27% year-on-year increase, rising from 6.52 msf in 2023. In comparison, Mumbai recorded transactions totalling 10.3 msf, marking a 17% growth; the National Capital Region (NCR) remained stable at 9.2 msf; Pune rose slightly by 1% to 8.6 msf; Bengaluru grew by 27% to 6.6 msf; Kolkata posted a 28% increase to 6.5 msf; and Chennai registered a 29% rise to 5.8 msf.
Ahmedabad continued to spearhead Gujarat's warehousing market with 5.8 msf of transactions during 2024, representing a 25% year-on-year growth. Companies such as Coca-Cola, Nestle India, Voltas Ltd and Toyota Tsusho India Pvt Ltd were among the significant contributors to the uptake of warehouse space in the region.
The manufacturing sector, excluding fast-moving consumer goods (FMCG) and fast-moving consumer durables (FMCD), remained the primary driver of demand. It accounted for 49% of transactions in Ahmedabad and 72% in Surat. In Surat, the majority of transactions were concentrated within the Kosamba-Palsana warehousing cluster, located near the National Highway. Meanwhile, Ahmedabad's warehousing activities were distributed across the Changodar-Bagodra, Sanand-Viramgam, Aslali-Kheda, and Vithalapur-Becharaji clusters.
In contrast to Ahmedabad and Surat, the other major warehousing hubs in Gujarat-Vadodara and Vapi-experienced a decline in transactions during 2024. Vadodara recorded a 2% decrease, with 0.46 msf of transactions, while Vapi saw a more pronounced drop of 24%, accounting for only 0.42 msf of transactions.
In Vadodara, Grasim Industries Ltd, SafeExpress, Prazastinav Compositech Pvt Ltd and Omega Icehill Pvt Ltd secured space within the Savli-Jarod-Halol warehousing cluster. Meanwhile, in Vapi, major warehousing transactions were recorded in the Vapi-Bhilad cluster by Hindustan Pencils, V-Trans and Nelson Global Products India Pvt Ltd.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, remarked that government initiatives aimed at bolstering manufacturing, combined with robust infrastructure support, have significantly enhanced Ahmedabad's warehousing demand. As a critical industrial centre for chemicals, textiles, pharmaceuticals, and food processing, Ahmedabad is expected to benefit from sustained industrial growth and rising logistics needs, he said.
Baijal further noted that Surat's rapid expansion underlines its increasing prominence within the warehousing sector, particularly in the Kosamba region. This growth has been driven largely by the chemical industry in the Bharuch-Ankleshwar corridor. He added that while Vadodara is likely to witness steady demand from the manufacturing, pharmaceutical, and automotive sectors, Vapi's strategic location continues to appeal to industries seeking scalable, high-quality warehousing infrastructure.
As the demand for modern warehousing solutions grows, Gujarat's key industrial hubs are expected to remain critical to the state's economic expansion.
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