India's Warehousing Boom: Grade A Supply to Reach 300 Million Sq Ft by 2025
India's warehousing sector is set to surpass 300 million sq ft by 2025, driven by rapid industrial growth and a thriving real estate market, with Pune, NCR, and MMR leading the way.
WarehousingReal EstateIndiaCredaiCre MatrixLogisticsE CommerceRetailInfrastructureReal Estate PuneJun 13, 2024
According to a recent report, India's warehousing sector is expected to witness a significant surge in demand, driven by the growth of e-commerce, retail expansion, and global companies entering the Indian market. The report highlights that Pune, NCR, and MMR are leading the transformation, with India's favorable policies, competitive manufacturing costs, and ample labor making it an attractive investment destination.
The warehousing sector has seen a 5% increase in rentals during the March quarter, with an absorption-to-supply ratio of 1.4 times. The top industries driving this growth are Third Party Logistics (3PL) (27%), manufacturing (20%), and e-commerce (12%).
The Indian government's policy support, including infrastructure status to the logistics sector, GST implementation, and permitting 100% FDI in warehousing & storage, has been crucial in attracting investments in this sector. Warehousing as an asset class has become a preferred sector for many investors and developers, offering faster production, higher revenues, and lower risks.
CREDAI (Confederation of Real Estate Developers' Associations of India) is a leading advocate for the Indian real estate industry, working towards promoting sustainable and responsible development practices. CRE Matrix is a real estate data analytics company that provides insights and solutions for the industry.
By 2025, India is expected to achieve Grade A completions of 85 million sq ft, taking the total warehousing stock to 300 million sq ft. With the Indian middle class growing at a faster pace than China, the demand for warehousing and storage facilities is set to rise significantly in the coming years.
Frequently Asked Questions
What is driving the growth of India's warehousing sector?
The growth of e-commerce, retail expansion, and global companies entering the Indian market are driving the demand for warehousing and storage facilities.
Which cities are leading the warehousing growth in India?
Pune, NCR, and MMR are leading the warehousing growth in India, with a combined demand of 53% in the Grade A/A+ segment.
What is the current warehousing stock in India?
The current warehousing stock in India is 216 million sq ft, which is expected to reach 300 million sq ft by 2025.
What is the significance of warehousing as an asset class?
Warehousing as an asset class offers faster production, higher revenues, and lower risks, making it an attractive investment option for many investors and developers.
What role has the Indian government played in promoting the warehousing sector?
The Indian government has provided policy support, including infrastructure status to the logistics sector, GST implementation, and permitting 100% FDI in warehousing & storage, to attract investments in this sector.
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