Hyderabad: Hyderabad holds immense potential as a warehousing destination as it is considered as an ideal occupier's market where rentals will be prone to staying depressed due to the potential for enough and more supply that can come up as required in the market, according to ‘India Warehousing Market Report 2016’ report on Indian logistics sector released by Knight Frank India.

Further the Report indicates that Hyderabad warehousing market will be hard pressed to generate up to 12% returns for investors by 2020. The Goods and Services Tax (GST) is expected to have a positive impact on Hyderabad due to its unique location, which is equidistant from major cities in South and Central India such as Bengaluru, Chennai, Nagpur, Pune and Mumbai. In terms of the requirement for warehousing space, the chemicals and pharmaceutical sector leads with approximately 14 mnsq. ft. followed by the remaining industries.