By Soumick Dutta
The rapid growth of e-commerce sector acted as a boon for warehousing and logistics real estate in India. With big players of ecommerce industry establishing their headquarters here, it strengthens India’s position as a preferred outsourcing destination.
A total of 10.1 million sq. ft of industrial and warehousing spaces was leased in the first two quarters of 2021 across top 5 Indian markets of Mumbai, Pune, Delhi-National Capital Region (NCR), Bengaluru and Chennai.
Third-party logistics companies (3PLs), followed by e-commerce contributed for 32% and 23% of the total demand respectively as per report.
Flipkart, Amazon, Adani Logistics and TCI Express LTD. are some notable organizations that recently leased large spaces. Grade A industrial and warehousing facilities accounted for 60% of total leasing, which shows preference for high grade structures.
In the first half of 2021 itself, the market witnessed 15.2 million sq. feet of new building completions, a twofold increase from the previous year.
Keen to capitalize on the flourishing demand for industrial and warehousing space, developers are speeding up building completions to capture the market.
It is a truth universally acknowledged by now that the growth of ecommerce is hugely dependent on warehousing, and warehousing needs to adopt to the new and emerging needs of this rapidly growing sector. Lastly, the warehousing sector provides lucrative real estate investment opportunities, which will bolster the economy as a whole.
Soumick Dutta is Head of Marketing & Business Development, Apeejay Real Estate
