Shamsabad leads as Hyderabad records 35 lakh sq ft in warehousing deals in 2024

Hyderabad: Shamsabad emerged as Hyderabad’s top warehousing and industrial hub, accounting for 47% of total transactions as the city recorded 35 lakh sq ft of warehousing deals in 2024, according to a Knight Frank India report.

Hyderabad has a development potential of 164 lakh sq ft to meet future warehousing demand, nearly five times the volume recorded in 2024.

Manufacturing and retail sectors drive demand

The manufacturing sector (excluding FMCG and FMCD) led the market with 34% of transactions, followed by the retail sector at 33%. Key contributors included renewable energy, automotive, and auto-ancillary industries. Government initiatives like Make in India and Production Linked Incentive (PLI) schemes have boosted Hyderabad’s manufacturing and logistics growth.

The retail sector, particularly e-commerce, FMCG, and consumer durables, also played a crucial role in warehouse leasing, catering to the city’s increasing consumer demand.

Shamsabad Cluster: The city’s warehousing hub

Located along the Bengaluru-Hyderabad Highway, the Shamsabad cluster has become the primary warehousing hub in the city. Key locations within this cluster include Shamsabad, Aerotropolis, Srisailam Highway, Bongloor, Kothur, and Shadnagar.

The region hosts industries such as seed processing, 3PL logistics, and electronics manufacturing, making it a preferred destination for warehouse investments.

Warehousing sector poised for growth

Shishir Baijal, Chairman & Managing Director of Knight Frank India, said Hyderabad’s strategic location, strong connectivity, and expanding industrial base have reinforced its position as a leading warehousing and logistics hub.

He emphasized that policy support, rising demand, and infrastructure growth will continue to drive investments in the sector.