With these deals, Welspun One’s land bank in South India now stands at 260+ acres across Karnataka and Tamil Nadu, representing a development potential of over 6 million sq. ft. The projects, backed by a $250 million (₹2,150 crore) investment, highlight the company’s push to build Grade-A logistics infrastructure at a time when warehousing demand is expected to grow at 15% annually.

Hoskote: Tapping East Bengaluru’s Consumption Corridor

In East Bengaluru, Welspun One has secured ~51 acres in the Hoskote-Soukya cluster to develop a Proxima category park. This location is already home to large occupiers like Amazon, Flipkart, and DHL and is strategically positioned near the Satellite Town Ring Road (STRR) and Bengaluru-Chennai Expressway.

• Connectivity: Close to NH-75, SH-95, Whitefield, Sarjapur, and KR Puram, giving it strong access to Bengaluru’s consumption-heavy eastern zones.
• Market Dynamics: The cluster currently has 7 million sq. ft. of Grade-A warehousing stock, but demand-supply gaps are expected to leave a 1.6 million sq. ft. shortfall by FY26–27.

Devanahalli: Premium Warehousing Near Airport City

The second acquisition, ~56 acres in Devanahalli, is earmarked for Proxima Plus, Welspun One’s premium warehousing brand designed for advanced industries. Located within the Yelahanka-Devanahalli cluster, this park will cater to electronics, aerospace, EV, and pharma sectors, supported by multimodal connectivity.

• Proximity: Adjacent to Bangalore International Airport expansion, Aerospace Park, STRR, and the proposed Multi-Modal Logistics Park (MMLP).
• Growth Outlook: The region faces a 2.4 million sq. ft. demand-supply gap by FY29, making it one of Bengaluru’s hottest warehousing corridors.

Multi-Node Strategy for Bengaluru

With parks now spread across North, East, and South Bengaluru, Welspun One is executing a multi-node strategy designed to overcome the city’s radial road congestion and ensure faster fulfillment.

Each park will feature IoT-based parking, solar-ready roofing, EV charging points, ESG-compliant infrastructure, rest zones, and women-centric facilities like crèches and training centers.

Leadership Speak

Balkrishan Goenka, Chairman, Welspun Group, said:
“Our momentum in the South is part of the Group’s vision to back future-facing businesses that power India’s infrastructure. Bengaluru is a key logistics hub, and these investments reflect our confidence in its long-term fundamentals.”

Anshul Singhal, Managing Director, WOLP, added:
“These are not just land acquisitions, but a commitment to building the backbone of South India’s new-age supply chains. By entering micro-markets early, we ensure our clients get scalable, differentiated, and future-ready solutions.”

The Bigger Picture

With South India playing a pivotal role in consumption and manufacturing growth, Welspun One’s 260+ acre footprint positions it strongly to capture demand from 3PLs, FMCG, electronics, retail, and EV industries. The company is targeting a 20–25 million sq. ft. warehousing portfolio with USD 2.5 billion AUM by 2028, with Bengaluru at the center of its expansion.

The post Welspun One Expands South India Logistics Footprint with 107-Acre Bengaluru Acquisitions appeared first on Square Feat India.

Pune Leads with Highest Rentals

Pune registered the highest rental values at INR 31/sq ft/month, fuelled by demand from 3PL, automotive, engineering, and manufacturing sectors. The city posted a 34% half-yearly and 13% annual rise, mainly driven by high-value transactions in Khed and Chakan. Limited land availability and rising land prices further pushed transaction values upward.

Mumbai Posts Lowest Rentals

Mumbai recorded the lowest rentals among the top seven cities at INR 18/sq ft/month. While there was a 2% increase compared to H2 2024, rates dipped by 2% annually. Fresh supply additions and balanced demand-supply dynamics kept rents steady.

Mixed Trends Across Other Cities

• Hyderabad: INR 19/sq ft/month, 2% half-yearly rise, 1% annual increase.
• Bengaluru: INR 19/sq ft/month, no change half-yearly, 5% annual decline despite higher demand.
• Chennai: INR 25/sq ft/month, 3% half-yearly and 2% annual growth.
• NCR: INR 21/sq ft/month, down 4% half-yearly and 10% annually, with ~60% leasing below average rent.
• Kolkata: INR 21/sq ft/month, 1% half-yearly dip but 8% annual rise despite muted absorption.

City-wise Rental Snapshot

Source: Vestian Research

Investment Sees Steep Decline

Despite strong absorption and steady rentals, institutional investments plunged to USD 32 million in H1 2025 – a 98% drop from H1 2024 levels. Its share in total real estate investments collapsed from 42% a year ago to just 1%.
Vestian attributes this to a strategic industry shift towards asset-light models, cautious investor sentiment amid global uncertainty, and rising operational costs.

Source: Vestian Research

Outlook: Long-Term Growth Drivers in Place

Shrinivas Rao, FRICS, CEO, Vestian, noted that despite the investment dip, demand remains strong in key markets. The expansion of multimodal logistics infrastructure, focus on sustainable and tech-enabled solutions, and strategic projects under the Gati Shakti plan will drive the next growth phase. Rising interest in tier-2 and tier-3 cities is also expected to add momentum.

Also Read: Robust Investments Bolster Warehousing & Logistics Sector in 2024

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