India's Warehousing and Logistics Sector Sees 8% YoY Growth in H1 2024
The first half of 2024 witnessed a significant increase in warehousing and logistics absorption, with Mumbai and Pune leading the charge. The sector also saw a notable increase in investments, with $1.6 billion poured in during H1 2024.
WarehousingLogisticsAbsorptionInvestmentsReal EstateReal Estate NewsAug 01, 2024
The sector also saw significant investments, with $1.6 billion poured in during H1 2024. This accounts for 42% of the total institutional investment received in the real estate sector. The investments were driven by the participation of foreign investors, who increased their stake in the Indian warehousing sector.Third-party logistics (3PL) companies dominated absorption, with a 39% share in H1 2024. Engineering and manufacturing, and automobiles and auto components sectors also saw an increase in their share of absorption.
Weighted average rentals in the warehousing and logistics sector marginally declined by 3% to Rs 21.6/sqft/month in H1 2024 over the same period a year ago. Rentals in Bangalore declined the highest by 8%, whereas Hyderabad witnessed a decrease of 7% during the same period,The growth of the warehousing and logistics sector is expected to continue, driven by the government's focus on infrastructure development and the increasing demand for grade-A warehouses.
Frequently Asked Questions
What was the growth rate of warehousing and logistics absorption in H1 2024?
The growth rate of warehousing and logistics absorption in H1 2024 was 8% YoY.
Which cities led the charge in warehousing and logistics absorption in H1 2024?
Mumbai and Pune were the top performers, accounting for 63% of the total absorption in H1 2024.
What was the total investment in the warehousing and logistics sector in H1 2024?
The total investment in the warehousing and logistics sector in H1 2024 was $1.6 billion.
What drove the growth of the warehousing and logistics sector in H1 2024?
The growth of the warehousing and logistics sector in H1 2024 was driven by the expanding economies of the world and the increased participation of foreign investors in the Indian warehousing sector.
What is the expected future growth of the warehousing and logistics sector?
The growth of the warehousing and logistics sector is expected to continue, driven by the government's focus on infrastructure development and the increasing demand for grade-A warehouses.
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