India’s Grade A warehousing supply to top 300 million sq ft by 2025
industrial growth and the emergence of one of the fastest growing real estate segments in the country, India’s warehousing sector is set to cross the 300 million sq ft mark by 2025 from the current stock of 216 million sq ft, according to a CREDAI-CRE Matrix joint report.
During the March quarter, India witnessed a 5% increase in warehousing rentals with the absorption to supply-ratio at 1.4 times.
Pune and NCR’s contribution to the pan India Grade A/A+ warehousing demand was 45%, while Mumbai Metropolitan Region (MMR) and NCR jointly had a demand touching 53% in the segment. MMR alone recorded a 52% on-year increase in supply during the quarter.
“The Indian real estate sector's strong fundamentals mirror India's economic growth, as evidenced by the exponential rise of specialized segments like warehousing. With e-commerce, retail expansion, and global companies entering India, we foresee a robust demand and supply growth for Grade A warehouses. Pune, NCR, and MMR lead this transformation, with India's favourable policies, competitive manufacturing costs, and ample labor making it as a prime investment destination,” said Boman Irani, President, CREDAI.
The various industries that made the most impact to achieve this growth are Third Party Logistics (3PL) (27%), manufacturing (20%), and e-commerce (12%). The quarter also witnessed a 1.2% decline in Grade A/A+ vacancy levels of warehousing across top six cities from a year ago.
“We are building highways at unprecedented speed and state governments have simplified
