Kolkata Warehouse Leasing Grows by 28% In 2024
Kolkata’s warehousing sector has experienced an impressive 28% year-on-year growth in leasing activity in 2024, reflecting the growing demand across key industries, particularly e-commerce and third-party logistics (3PL) companies. This surge underscores the city’s emerging role as a major logistics hub in eastern India, driven by strong infrastructure development and favourable policy measures.
The 3PL sector has seen its share of the leasing activity rise sharply, from 22% in 2023 to 42% in 2024. This increase reflects the growing reliance on third-party logistics providers to manage and streamline supply chains. At the same time, e-commerce leasing activity grew from 15% in 2023 to 23% in 2024, fuelled by sustained consumer demand and the need for efficient last-mile delivery solutions. The demand for warehouses in this segment highlights the shift towards a more dynamic logistics infrastructure, especially as online shopping continues to boom across India.
Meanwhile, the retail sector has maintained a steady 8% share in warehouse leasing, while FMCG and FMCD sectors have experienced slight increases in activity, demonstrating the diversification of the demand for warehousing space in Kolkata. Dankuni and its suburbs remain the top destination for warehouse leasing, accounting for 59% of the total leased space, though this is slightly down from 62% in 2023. The National Highway 16 corridor (formerly NH 6), on the other hand, saw an increase in leasing activity from 34% in 2023 to 38% in 2024.
This rise is primarily due to the availability of Grade A warehouses and enhanced connectivity along the route, making it an attractive location for businesses looking for efficient logistics solutions. An expert in the logistics sector shared their perspective, stating, “Kolkata’s warehousing market continues to show resilience and growth, fuelled by increasing demand from key industries, along with ongoing infrastructure upgrades. Despite challenges like the limited availability of Grade A warehouse space, the region is on track to maintain its status as a prime logistics hub in eastern India.”
The city’s warehousing sector stands poised for further growth, with ongoing investments in infrastructure and a supportive policy environment. These developments ensure Kolkata will remain a key player in India’s growing logistics and supply chain network, offering businesses the ideal environment to thrive and expand their operations.
