Anarock Capital Concludes Deal of 41-Acre Property on Ballabhgarh-Sohna Highway in NCR

Anarock Group has completed the sale of a 41-acre property lot on the Ballabhgarh-Sohna highway in a significant land transaction in the National Capital Region.

Pardos Logistics, a subsidiary of Pardos Real Estate (a development platform hatched by the DMI Group's Alternative Investment Fund), would create one million square feet of excellent warehouse space on this plot of land. Land prices in the Ballabhgarh-Sohna Highway area now vary between Rs 1.4 and 1.5 crore per acre.

According to Akshay Uday, senior vice president, Anarock Capital, "the land was obtained from a consortium of Delhi-based investors and would be developed over an 18-month period with an investment corpus of around INR 200 crore." The site is conveniently positioned near essential road infrastructure such as the Delhi-Vadodara Expressway, Eastern Peripheral Expressway, National Highway 8, and KMP Expressway."

The Sohna-Ballabgarh market has gained significance in the previous two years, after the acquisition of property for a 77-acre warehouse by industrial and warehousing operator ESR India. Amazon has leased 900,000 square feet of space at the ESR warehouse, and other major retailers such as Tata Croma have also taken space there.

"The warehouse and logistics industry has benefited significantly from the new post-pandemic market realities," says Shobhit Agarwal, Managing Director and Chief Executive Officer of Anarock Capital. "As industrial activity has increased throughout the nation, demand for W&L assets has increased significantly. The rising economy and evolving business strategies have also aided the sector's expansion."

According to Anarock Research, the entire pan-India Grade A warehouse stock as of 2021 was around 140 million square feet, expanding at a 16 percent compound annual growth rate between 2018 and 2021. NCR accounts for about 15-20% of this. The epidemic has boosted demand significantly, since eCommerce has exploded in popularity since covid-19 hit. Online firms will continue to grow, resulting in a rise in new warehousing demand. Similarly, multi-story warehouses located near city borders are in high demand.

Domestic and foreign private firms have recognised the enormous development potential of the Indian warehousing industry and are aggressively attempting to close the cost-efficiency gap. Over 70% of India's modern warehouse capacity is concentrated in the country's top eight cities: MMR, NCR, Bengaluru, Kolkata, Hyderabad, Chennai, Ahmedabad, and Pune.