Noida airport will lead to growth in warehousing, logistics sector: Knight Frank

Jewar Airport or the Noida International Greenfield Airport, spread over 5,000 hectares at the cost of Rs 35,000 crore will aid the region to grow as a warehousing hub and will push India to augment its logistics infrastructure sector, says Knight Frank India in a statement. 

The company says that the Jewar airport will unlock huge lands for manufacturing and warehousing sectors as air connectivity is essential for logistic business.

"For the warehousing sector, a good transport network is primordial to ensure that businesses remain profitable on account of efficiencies. Most investors and landlords are looking for land with clear titles ranging between INR 10 million - 15 million per acre. The right land at the right price will ensure that take-up is fast," said Balbirsingh Khalsa, Executive Director (Industrial and Logistics) at Knight Frank India

Grade A warehouses make up 30 per cent, Grade B is 70 per cent of total stock in NCR, and only 15.8 per cent is vacant in the NCR market. About 75-80 per cent of these warehouses are in and around NH - 8 in Gurgaon. 

The company says that the challenge faced by the market is the availability of high-grade warehousing hubs while demand for Grade A properties is on a continuous rise.

A warehousing and logistics hub is expected in Tappal Bajna, which is 7 km away from the new Jewar International Airport. 

Jewar Airport can open up available 2,000-3,000 acres for manufacturing and warehousing sectors and will lead to 50 mn+ sq ft of development.

"The biggest challenge will be land rates. Because of the speculation, rates have already started to escalate and is not making business sense. The second major challenge will be the actual time taken to create the right ecosystem for the warehousing sector to see demand in the region," adds Balbirsingh Khalsa.