Mumbai (Commonwealth Union)_ By 2025, India’s Grade-A warehousing industry is anticipated to grow by 15%. Warehousing is anticipated to grow to a US$2.8 billion industry soon, according to the India Warehousing Report by CREDAI and Anarock.
According to the report, the demand for Grade-B and Grade-C office space will increase as a result of this. These spaces aren’t big enough to accommodate the growing demand for large, modern infrastructure. “Government efforts to make it easier to conduct business, with a focus on single-window approvals from many states, land allotment, and even faster environmental clearances, are greatly assisting this sector. This is the reason why its demand is rapidly rising in tier-II and tier-III cities as well,” according to the President of the company Harsh Vardhan Patodia.
India’s perspective on the warehousing industry has changed over the past ten years, going from unorganized godowns to a significant asset class. According to the report, Grade-A warehouse space totaling 48.5 million square feet was leased in the top seven cities in 2021, and by the end of 2023, that space is expected to rise to 55.8 million square feet. It stated that a total of 160 million square feet had been leased for Grade-A warehouse space across seven cities, with Mumbai and Pune accounting for the largest portion (37%) and the southern region (32%).
Manufacturing, e-commerce, and third-party logistics are the three industries that contribute most to the total amount of warehouse space leased across seven cities. In order to balance their real estate portfolio, many investors and developers now favor the asset class of warehousing because of its higher revenues and lower risks. The demand for storage is also being driven by this. A further factor in attracting investments in this sector has been the government’s policy support over the past few years, which has included giving the logistics industry infrastructure status, implementing the GST, and allowing 100 percent FDI in warehousing and storage.
