India's Warehousing and Logistics Sector Sees 8% Annual Growth in H1 2024
The sector received investments worth USD 1.6 Bn in H1 2024, accounting for 42% of the total institutional investment received in the real estate sector.
WarehousingLogisticsReal EstateInvestmentIndiaReal Estate PuneAug 01, 2024
3PL (3rd Party Logistics) companies dominated absorption with 39% share in H1 2024, up from 26% in H1 2023. Similarly, the share of Engineering & Manufacturing and Automobiles & Auto Components sectors also saw an increase from 16% and 4% in H1 2023 to 22% and 9% in H1 2024, respectively.The sector received investments worth USD 1.6 Bn in H1 2024, accounting for 42% of the total institutional investment received in the real estate sector. As major economies of the world started expanding again and foreign investors increased participation in the Indian warehousing sector, investments in H1 2024 were equal to 1/3rd of the total institutional investment received in the past four years. Moreover, investments increased by 4.5X in H1 2024 compared to H1 2023.\n\nShrinivas Rao, FRICS, CEO, Vestian, commented,
Frequently Asked Questions
What was the growth rate of the Indian warehousing and logistics sector in H1 2024?
The sector witnessed an absorption of 16.6 Mn sq ft in H1 2024, showcasing an increase of 8% over the same period a year earlier.
Which cities accounted for the majority of absorption in H1 2024?
Mumbai and Pune together accounted for 63% of the total absorption in H1 2024, followed by southern cities (Bengaluru, Chennai, and Hyderabad) at 29%.
What was the share of 3PL companies in H1 2024?
3PL (3rd Party Logistics) companies dominated absorption with 39% share in H1 2024, up from 26% in H1 2023.
What was the total investment received by the sector in H1 2024?
The sector received investments worth USD 1.6 Bn in H1 2024, accounting for 42% of the total institutional investment received in the real estate sector.
What was the impact of government announcements on the sector?
Recent government announcements to boost infrastructure developments are likely to reduce logistics costs from 8-9% to 5-6% of the GDP, leading to an increase in real estate activities in the warehousing sector.
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