India's Warehousing Sector Set to Boom: 300 Million Sq Ft by 2025
India's warehousing sector is expected to reach 300 million sq ft by 2025, driven by rapid industrial growth and e-commerce expansion. Pune, NCR, and MMR lead the demand for Grade A warehouses.
WarehousingReal EstateIndiaLogisticsE CommerceReal Estate PuneJun 13, 2024
According to a recent report, the warehousing rentals in India witnessed a 5% increase during the March quarter, with the absorption to supply-ratio at 1.4 times. Pune and NCR led the demand for Grade A warehouses, with a combined contribution of 45% to the pan-India demand. Mumbai Metropolitan Region (MMR) and NCR jointly accounted for 53% of the demand.
The warehousing sector has emerged as a preferred asset class for investors and developers, owing to its faster production and higher revenue generation with lower risks. The sector has received policy support from the government, including infrastructure status to the logistics sector, GST implementation, and permitting 100% FDI in warehousing & storage.
The growth in the warehousing sector is driven by various industries, including Third Party Logistics (3PL) (27%), manufacturing (20%), and e-commerce (12%). The quarter also witnessed a 1.2% decline in Grade A/A+ vacancy levels of warehousing across top six cities from a year ago.
CREDAI (Confederation of Real Estate Developers' Associations of India) is the apex body of private real estate developers in India. CRE Matrix is a real estate research and analytics firm that provides insights and data on the Indian real estate market.
CREDAI-CRE Matrix joint report highlights the growth potential of the Indian warehousing sector, driven by rapid industrialization and e-commerce expansion. The report emphasizes the importance of government support and policy initiatives in attracting investments in the sector.
Frequently Asked Questions
What is the current warehousing stock in India?
The current warehousing stock in India is 216 million sq ft
What is the expected warehousing supply by 2025?
The expected warehousing supply by 2025 is 300 million sq ft
Which cities lead the demand for Grade A warehouses?
Pune, NCR, and MMR lead the demand for Grade A warehouses
What is the growth driver for the warehousing sector?
The growth driver for the warehousing sector is rapid industrialization, e-commerce expansion, and retail growth
What is the policy support provided by the government for the logistics sector?
The government has provided policy support to the logistics sector, including infrastructure status, GST implementation, and permitting 100% FDI in warehousing & storage
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