Grade A facilities are preferred by occupiers following demand created by the rising e-commerce, light manufacturing and consumption
India’s industrial and logistics sector is on track for significant expansion, with absorption projected to exceed 65 msf in 2025, according to Savills India.
PE investors in India shifted lanes from commercial real estate that attracted huge investments in FY2024 to logistics and warehousing
The project, coming up in the special economic zone adjacent to the Jawaharlal Nehru Port, will be the largest single-location warehousing project in the country
The acquisition is part of the Rs 706-crore investment plan to acquire fully leased warehousing assets in Surat, Pune, Bengaluru and Hyderabad
The leasing was supported by a supply of 38.6 msf. Mumbai, Chennai, and Bengaluru were the key contributors to the supply, accounting for over half the total.
India’s logistics and warehousing industry is on the brink of a significant transformation. This is largely because the nation is emerging as a global manufacturing hotspot, according to Sumit Rakshit, MD, Project Management Services, Savills India.
The assets sold by IndoSpace are located in Pune, Maharashtra, and in Sri City, Andhra Pradesh. Avendus Capital acted as the financial advisor to IndoSpace on the deal
Private equity firm Blackstone-backed Horizon Industrial Parks has committed to develop Grade-A warehousing facilities across 70 acres in 13 locations, with an investment of over Rs 700 crore.
Over the next five years, the retail, third-party logistics and e-commerce segments are pegged to drive 80 percent of Grade A warehousing demand, with absorption to hit 410 million square feet. At present, up to 70 percent of Grade A warehousing demand comes from cities including Delhi-NCR, Mumbai, Bengaluru, Chennai and Pune.
The 22-acre land parcel is situated along Bilaspur-Tauru road close to NH-8 near Gurugram. The project is likely to create 1,500 jobs
Chennai and NCR lead the pack as large deals (above 200,000 sq ft) account for about 35 percent of the demand
Report stated that Mumbai Metropolitan Region (MMR) and National Captal Region (NCR) jointly had a demand touching 53 percent in the warehousing segment. Various industries that contributed the most to the growth of warehousing sector include third party logistics (27 percent), manufacturing (20 percent), and e-commerce (12 percent).
Seasonal jobs are generally recurring in nature and companies hire individuals during a particular time only to meet increased demand.
Currently, the Lucknow region has a total of 5.2 million square feet of warehouse stock with about 1.4 million square feet of Grade A supply in the pipeline on the Lucknow-Kanpur highway cluster
However, the e-commerce sector absorption dropped from 13 percent last year to 3 percent in H1 2023.
The scheme is expected to have good potential as it would cater to the demand for warehouses in Greater Noida, which is well-connected with rail and road networks.
However, the e-commerce sector witnessed a significant decrease in transaction volume in FY23.
The report said that manufacturing, logistics, e-commerce, and retail sectors will continue to drive the warehousing demand, with logistics and e-commerce players emerging as major occupiers.
The IT city is likely to witness a surge in investment for development of premium warehousing park to meet growing demand for storage space from e-commerce and third-party logistics players, the paper said.
The company also plans to look at Cognizant’s proposed sale of assets when it comes up
The projects are being undertaken as part of the memorandum of understanding with the Tamil Nadu government to invest Rs 2,500 crore in the state over five years.
The project is an important part of MLL’s pan-India network of multi-user facilities in key logistics nodes and manufacturing clusters.
The expressway is expected to boost investment in high-tech industrial development in areas that it passes through.
Leasing in the industrial and logistics sector grew by 8 percent on-year to 31.6 million sq. ft. in 2022, despite global headwinds and a slowdown in e-commerce demand, according to a report by CBRE.