VISAKHAPATNAM : The warehousing demand in Andhra Pradesh is on the rise with newer locations emerging in this sector.

According to Knight Frank India’s India Warehousing Market Report-2023, Visakhapatnam recorded a sharp 265% increase in 2022-23. Retail and manufacturing sectors were the major drivers during FY 2023, accounting for a warehousing demand share of 35% and 33% respectively. The total warehousing in the city has reached to 11 lakh square meter mark during this period.

The Gajuwaka-Auto Nagar cluster accounted for 29% of the warehousing transactions in 2022-23, whereas the Madhurawada cluster accounted for 71% of the volume. The transactions for the Visakhapatnam warehousing market increased by 265% year-on-year during FY 2023, following a 228% YoY growth during FY 2022.

This growth in transactions was driven by the increase in demand from the retail, manufacturing, and e-commerce sectors. The market volume stood at 3 lakh square metre during FY 2022, which increased to 11 lakh square metre last fiscal.