Warehouses Surpass Offices as the Hottest Real Estate Investment in India
Bengaluru: India's warehousing and logistics real estate sector is rapidly becoming a leading draw for institutional capital, surpassing office and retail assets. Global and domestic investors are now focusing on stable, long-term returns with large platforms supported by long leases and low tenant turnover, which are increasingly being prepared for REIT (Real Estate Investment Trusts), InvIT (Infrastructure Investment Trusts), or public market listings.
Platform-based investments have become the dominant strategy, with major global investors such as Blackstone, GIC, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority, alongside domestic capital providers including HDFC Capital and Kotak Investment Advisors, backing scaled logistics platforms.
A recent study by Grant Thornton Bharat highlights that institutional interest has shifted from exploratory to conviction-led. 'India's real estate landscape is being structurally redefined,' said Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat. 'Warehousing has transitioned from a peripheral asset class into strategic economic infrastructure. It now sits at the intersection of real estate, capital markets, and national logistics planning, offering long-term stability, institutional-grade income, and scalability.'
These investments are typically structured with clear monetization pathways through REITs, InvITs, or eventual public listings once portfolios achieve operational scale and stabilized cash flows.
'The country's warehousing and industrial sector is not only significantly underpenetrated but is also poised for outsized growth as digital commerce, consumption, and manufacturing continue to grow at a rapid pace,' said Urvish Rambhia, CEO of Horizon Industrial Parks. The firm has scaled its network to 10 regions and 58 million square feet in just five years, reflecting the considerable momentum in the warehousing and industrial sector.
Warehousing's growing appeal is also linked to its strategic role in India's manufacturing push, e-commerce expansion, and supply chain formalization. As a result, large, compliant logistics platforms with diversified tenant bases and corridor-led portfolios are increasingly viewed as defensive, income-generating assets capable of delivering long-term yield stability.
'The combination of predictable income, strong tenant stickiness, scalable portfolios, and asset appreciation creates a perpetual income stream, making this sector highly attractive for institutional capital and public market vehicles such as REITs and InvITs,' said N Amrutesh Reddy, Director of NDR InvIT.
The sector's robust growth is further supported by government initiatives aimed at boosting manufacturing and improving logistics infrastructure, making it a prime investment opportunity for both domestic and international investors. With the increasing demand for efficient supply chains and the rise of e-commerce, the warehousing and logistics sector is poised to remain a key focus for institutional investors in the coming years.
