Mumbai, October 17, 2024 – The Indian warehousing sector is poised for a major transformation, with demand expected to surge to approximately 1.2 billion sq. ft by 2027. This projection comes from a report titled “Future of Logistics: Warehousing Market – India,” released by JLL India in collaboration with Miebach Consulting. The growth encompasses Grade A, B, and C warehouses across all Indian cities, highlighting a significant shift toward high-quality Grade A facilities, which are projected to increase from 290 million sq. ft in 2023 to 400 million sq. ft by 2027.
The report identifies e-commerce, third-party logistics (3PL), and omni-channel retail as primary drivers behind this warehousing boom. Notably, while Tier I cities have traditionally led the sector, Tier II and III cities are now emerging as key growth areas, with warehouse space absorption in these markets increasing by 41% from 2022 to 2023.
“Warehousing absorption in Tier II and III cities reached 16.4 million sq. ft in 2023, indicating a significant shift in the geographical distribution of logistics infrastructure,” said Sanjay Bajaj, Senior Managing Director of Logistics & Industrial at JLL India. The report also highlights the growing need for urban fulfillment centers, estimating that the combined space requirement for these centers will exceed 35 million sq. ft across India by 2027, driven by the demand for efficient last-mile delivery solutions.
As the sector evolves, sustainability is becoming increasingly important, with many developers adopting Environmental, Social, and Governance (ESG) standards in their projects. The National Logistics Policy, aimed at reducing logistics costs to 10% of GDP, is also creating a more favorable environment for organized warehouse development.
This strategic shift positions India as a key player in the global warehouse automation market, projected to reach $2 billion annually by 2026. With these developments, the Indian warehousing sector is set to play a pivotal role in the country’s economic growth and supply chain transformation.
Also Read: Industrial & Warehousing Demand Sees Robust Growth in 2024, Surpassing 20 Million Sq Ft of Leasing
