The nascent warehouse market in India will witness a fresh supply of warehouse space with the increase in various trading and industrialactivities and the active development of retail trade in the country. With the finance ministry proposing that up to 49 per cent foreign direct investment (FDI) in multi-brand retail be allowed by the automatic route, or permitting foreign supermarkets in India by allowing up to 51 per cent FDI, subject to its approval, and making the inter-state tax structure system uniform by rolling out the goods and service tax (GST), there will be a surge in industrial and trading activities and demand for warehousing in eastern region is expected to rise.

Nice Property Management is managing more than five lakh square feet (sqft) of warehouse space at Patna in Bihar currently. Such is the demand of warehouse space that the company is aiming to build another 1.5 lakh sqft space sooner.

The demand of warehouse market continues to show significant growth in the Patna market. Strong demand is likely to drive rental rates higher by 5-10 per cent over the next six months. The warehouse properties yield in Kolkata at present is around 12 per cent.