Grade A Warehousing Stock Surges 170% In Last 5 Yrs

Mumbai: Grade A warehousing stock in India surged 170 per cent in the last five years, reaching an all-time high of 238 million square feet last year, a report showed on Tuesday. The total logistics and industrial real estate sector stock across the top eight cities reached 438 million square feet, with projections suggesting it could hit approximately 700 million sq ft by 2028, according to the report by JLL.

This growth is driven by the occupiers increasingly looking for good quality and compliant spaces as well as rising traction from the institutional investors in the sector. Demand remained strong, with net absorption for 2024 reaching an all-time high of 50.4 million sq ft, up from 40.6 million sq ft in 2023.

The 3PL/logistics and manufacturing sectors led the absorption in the market accounting for more than 65 per cent. The year 2024 also witnessed revival of demand from the e-commerce sector, especially from quick commerce companies, said the report.