India's warehousing space is expected to reach 300 million sq ft by 2025, driven by e-commerce, manufacturing, and 3PL. Learn about the key drivers and growth trends in the sector.
New Delhi, Jun 13 (PTI) Total availability of premium warehousing space is expected to rise nearly 40 per cent to 300 million (3,000 lakh) sq ft by end of the next calendar year, according to CREDAI and CRE-Matrix report.
Realtors' body CREDAI and data firm CRE-Matrix on Thursday released a report on warehousing space, which has emerged as one of the key segments in the Indian real estate sector.
"Currently, the overall Grade A (premium) warehousing stock stands at 216.2 million sq ft. India's warehousing sector is set to cross the 300 million sq ft-mark by 2025," CREDAI and CRE Matrix said.
Third Party Logistics (3PL), manufacturing and e-commerce players are major demand drivers, the report noted.
CREDAI President Boman Irani said the Indian Real Estate sector's strong fundamentals mirror India's economic growth, as evidenced by the exponential rise of specialised 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, Delhi-NCR, and MMR (Mumbai Metropolitan Region) lead this transformation, with India's favourable policies, competitive manufacturing costs, and ample labour, making it as a prime investment destination," Irani said.
CRE Matrix & IndexTap CEO and Co-Founder Abhishek Kiran Gupta said India's warehousing stock is 1/5th of China and this booming Indian middle class needs more storage space than ever before.
He said around 85 million sq ft of warehousing space is expected to be completed in the next 7 quarters, taking the total warehousing stocks to 300 million sq ft Grade A Stock milestone by 2025-end.
"We are building highways at unprecedented speed and state governments have simplified laws to set up warehousing facilities. But that takes care of supply only. On the demand side, India's middle class income and population is booming at a faster pace than China and is central to our goal of becoming USD 5 trillion in next 3 years," Gupta added.
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
© 2024 Rediff.com India Limited. All rights reserved. Disclaimer - Terms of Service - Privacy Policy - Feedback