India's Grade A Warehousing Sector Set to Cross 300 MSF by 2025
India's warehousing sector is expected to cross the 300 million square foot mark by 2025, driven by rapid industrial growth and e-commerce expansion.
WarehousingReal EstateIndiaCredaiCre MatrixLogisticsE CommerceReal Estate PuneJun 14, 2024
The sector has been driven by rapid industrial growth and the emergence of e-commerce as a major driver of demand. The report highlights that Pune and NCR's contribution to the pan India Grade A/A+ warehousing demand was 45%, while MMR and NCR jointly had a demand touching 53% in the segment.
The various industries that made the most impact to achieve this growth are third-party logistics (27%), manufacturing (20%), and e-commerce (12%). This quarter has also seen a 1.2% decline in grade A/A+ vacancy levels of warehousing across top six cities as compared to Q1 2023.
The government's thrust on policy implementation, lower manufacturing costs, and availability of low-cost labor compared to developed countries have made India an attractive investment destination. The warehousing demand is expected to continue to grow in the future due to an increasing demand resulting from increased consumption.
The Indian real estate sector has witnessed a significant transformation over the last decade, with the warehousing sector emerging as a prominent asset class. The government's policy support, including infrastructure status to the logistics sector, GST implementation, and permitting 100% FDI in warehousing and storage, has been crucial in attracting investments in this sector.
CREDAI (Confederation of Real Estate Developers' Associations of India) is the apex body of real estate developers in India. CRE Matrix is a leading real estate research and analytics firm.
Frequently Asked Questions
What is the current grade A warehousing stock in India?
The current grade A warehousing stock in India stands at 216.2 million square feet.
What are the key drivers of demand for warehousing in India?
The key drivers of demand for warehousing in India are third-party logistics, manufacturing, and e-commerce.
What is the expected growth rate of the warehousing sector in India?
The warehousing sector in India is expected to witness significant growth, with the grade A warehousing stock expected to cross the 300 million square foot mark by 2025.
What are the benefits of investing in the warehousing sector in India?
The benefits of investing in the warehousing sector in India include faster production, higher revenues, and lower risks, making it an attractive investment destination.
What is the role of the government in supporting the growth of the warehousing sector in India?
The government has played a crucial role in supporting the growth of the warehousing sector in India through policy support, including infrastructure status to the logistics sector, GST implementation, and permitting 100% FDI in warehousing and storage.
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