Demand for Indian warehousing projected to touch 1.2 billion sq ft by 2027
logistics sector is poised for a significant transformation and evolving supply chains are expected to drive a projected demand for around 1.2 billion sq ft of warehouse space by 2027 spanning across Grade A, B, and C facilities in cities across the country, showed a JLL India and Miebach Consulting, India study.
This growth is not only about quantity but also quality, with a significant shift towards Grade A warehousing, where stock is expected to rise from 290 million sq ft in 2023 to 400 million sq ft by 2027.
E-commerce, Third-Party Logistics (3PL), and omni-channel retail are emerging as the primary drivers of this warehousing boom, particularly for high-quality Grade A spaces. However, the landscape of growth is changing. While major cities have traditionally dominated the warehousing sector, tier II and III cities are now emerging as the next frontier. The study reveals a striking 41% increase in warehouse space absorption in Tier II plus markets from 2022 to 2023,
“Warehousing absorptions in tier II and III cities clocked 16.4 million sq ft in 2023, up 41% from 11.6 million sq ft in 2022, signalling a significant shift in the geographical distribution of logistics infrastructure. The sector's evolution is further propelled by urban fulfilment needs which are estimated to require an additional 35 million sq ft pan-India by 2027,” Sanjay Bajaj, Senior Managing Director of Logistics & Industrial, India, JLL.
According to him, as the industry adapts to these changes, it is also embracing Environmental,
