Realty builds on data centres, warehousing amid Covid-19 pandemic

Propelled by online retail and a shift to virtual working and learning, the two segments are driving business for logistics firms at a time when demand for office space has shrunk

HDFC Chairman Deepak Parekh’s comments at the company’s 44th annual general meeting that future demand for commercial properties will come from warehousing and data centres are not without proof.

While office absorption fell by 22 per cent in H1 this year, as companies leased less space because of the pandemic, the growth in warehousing and data centres has come as a boon for property developers.

Riding on a strong demand from e-commerce, retail and pharma, the warehousing segment saw a sharp rise in absorption. Net absorptions in warehousing in H1 2021 clocked 14.3 million square feet, despite the second wave