Summary:
India’s Grade A warehousing business is experiencing unprecedented expansion, fueled by record demand in the transportation and industrial sectors. According to a joint analysis by CREDAI and CRE Matrix, premium warehouse leasing is estimated to reach 45 million square feet by 2024. The first half of the year has already seen 20.3 million square feet leased, with predictions for the second half exceeding 25 million square feet. Notably, demand in the first half outpaced new supply, resulting in an 8.2% vacancy rate, indicating strong growth.
As investments increase and new production units are constructed alongside e-commerce expansion, steady demand momentum is projected as we approach Q4 2024. Mr. Abhishek Kiran Gupta, co-founder and CEO of CRE Matrix, emphasized India's global market position, citing companies relocating from China or expanding into India. Competitive advantages, such as low wages and technological advancements, are expected to drive the market to 300 million square feet by 2025. Pune has a strong demand for Grade A warehousing, with a 2x demand-to-supply ratio indicating future growth potential.
Source: IBEF
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