Boom in India's Premium Warehousing Amid Evolving Real Estate

Demand for premium warehousing spaces in top Indian cities might slightly drop to around 45 million square feet this year. Despite this, leasing transactions are strong, with major metros emerging as key industrial hubs. Future projections for warehousing stock remain promising, highlighting strategic opportunities for developers.

Demand for premium warehousing spaces across India's top six cities might experience a slight decline to approximately 45 million square feet this year, according to a report by CREDAI and CRE-Matrix.

In 2023, the warehousing space leasing transactions reached 47.15 million square feet in major metros including Delhi-NCR, the Mumbai Metropolitan Region, Chennai, Pune, Hyderabad, and Bengaluru. However, projections for 2024 suggest that leasing could surpass 45 million square feet, with 20.3 million expected in the first half of the year and over 25 million in the latter half.

The report highlights India's Grade A warehousing stock, which is poised to exceed 300 million square feet by 2025. Pune and the MMR have become crucial industrial hubs, driving nearly half of this demand, while investments, manufacturing growth, and e-commerce expansion continue to fuel this sector.

(With inputs from agencies.)