Warehousing Investment Soars Amid E-commerce Boom

Institutional investment in warehousing surged to nearly USD 2 billion in 2024, driven by e-commerce demand. A Vestian report highlights a 203% increase in investments. Third-party logistics firms contributed significantly, while rental prices vary across major cities due to space constraints and demand.

Institutional investment in warehousing assets witnessed a remarkable rise, tripling to almost USD 2 billion in 2024, influenced by high demand from e-commerce and third-party logistics firms, as per data from real estate consultant Vestian.

The comprehensive report on warehousing and logistics notes a 203% year-on-year surge in investment inflows, attributed to the rapid growth of the quick commerce sector. This led to a record absorption of 44.9 million sq ft in space, an increase of 19% over the previous year.

Despite challenges like skilled workforce shortages and regulatory hurdles, India's logistics sector remains robust, with cities like Chennai showing the highest monthly rentals. Mumbai, however, emerged as the most affordable market in 2024 due to the opening of new, cost-effective warehousing locations.

(With inputs from agencies.)