The moderation comes after four years of aggressive capacity expansion by key occupier segments such as e-commerce, manufacturing, and third-party logistics (3PL) players. In the post-COVID phase, companies rapidly scaled up warehouse footprints to strengthen supply chains, support rising consumption, and meet faster delivery timelines. By 2025, much of this capacity had already been created, prompting occupiers to temporarily pause large-scale expansion and focus on consolidating and optimising existing networks.

Industry experts view the decline as a natural correction following an intense growth cycle rather than a sign of weakening demand. Shrinivas Rao, FRICS, CEO of Vestian, noted that the slowdown was driven by a high base effect and cautious occupier sentiment amid global uncertainty. Despite softer absorption, demand from core sectors such as e-commerce, manufacturing, and logistics remained resilient, with occupiers increasingly prioritising Grade A assets in established markets.

Mumbai continued to dominate the warehousing landscape in 2025, recording the highest absorption among the top seven cities at 15.2 million sq ft, even as leasing activity declined 18% year-on-year. The city’s share in pan-India absorption slipped marginally from 41% in 2024 to 39% in 2025. Notably, tight supply conditions pushed average rentals up by 16% to ₹21 per sq ft per month.

Pune retained its position as the second-largest warehousing market, with absorption of 6.4 million sq ft. However, this represented a sharp 51% decline from the exceptional 13.0 million sq ft recorded in 2024, indicating market normalisation. Despite lower leasing volumes, Pune emerged as the most expensive warehousing market in India, with rentals rising 22% to ₹28 per sq ft per month.

The National Capital Region (NCR) stood out with a strong rebound, as absorption jumped 38% year-on-year to 5.5 million sq ft. Its share in total absorption increased from 9% to 14%, supported by steady demand and a 4% annual rise in rentals to ₹23 per sq ft per month.

Southern markets delivered mixed performance. Hyderabad saw absorption decline 31% in 2025, with its share slipping slightly to 6%. Nevertheless, rentals increased 10% to ₹20.8 per sq ft per month, reflecting continued occupier preference for quality assets. In contrast, Bengaluru and Chennai recorded healthy growth, with absorption rising 30% and 39%, respectively, although rental values in both markets remained largely stable.

Kolkata emerged as a surprise performer, with its share in pan-India absorption tripling to 6%. Leasing volumes surged 175% year-on-year, supported by improving infrastructure and growing occupier interest, leading to a moderate 6% rise in rentals to ₹22 per sq ft per month.

Looking ahead, industry fundamentals remain favourable. Strengthening domestic consumption, improving macroeconomic stability, and easing financing conditions are expected to support demand in 2026. As per industry estimates, annual warehousing absorption is projected to rebound to 40–45 million sq ft, indicating renewed momentum for the sector after a phase of consolidation.

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

The post India’s Warehousing Market Cools in 2025 After Record Highs, Signals Healthy Reset Rather Than Slowdown appeared first on Square Feat India.

According to Colliers India, industrial & warehousing leasing across the top eight cities touched 36.9 million sq ft in 2025, registering a 16% year-on-year growth. Nearly 45% of this demand came from large-sized transactions of over 200,000 sq ft, underlining the increasing scale at which occupiers are expanding their logistics and manufacturing footprints.

Delhi NCR and Chennai Emerge as Demand Anchors

Two markets clearly stood out in 2025 — Delhi NCR and Chennai, which together accounted for 46% of total industrial & warehousing leasing activity during the year.

• Delhi NCR led the pack with an 8.8 million sq ft absorption and a 24% share of national demand
• Chennai followed closely with 8.1 million sq ft, contributing 22%

On a quarterly basis, after a relatively muted Q3, leasing momentum picked up sharply in Q4 2025, with 10.4 million sq ft of space transacted. Chennai and Pune together made up 56% of Q4 demand, highlighting strong year-end expansion activity by occupiers.

3PL Firms Drive One-Third of Leasing Activity

Third-Party Logistics (3PL) companies continued to dominate India’s Grade A warehousing market in 2025. Colliers data shows that 3PL players leased around 12 million sq ft, accounting for 32% of total demand.

Engineering and e-commerce occupiers also gained traction and together contributed about 35% of total leasing, reflecting the growing importance of domestic manufacturing, electronics, automobiles, and online retail supply chains.

At a micro-market level:

• Bhiwandi (Mumbai) led leasing nationally with 4.9 million sq ft
• Chakan–Talegaon (Pune) and Oragadam (Chennai) followed, each crossing 2.5 million sq ft

These locations benefited from proximity to consumption hubs, manufacturing clusters, and established logistics infrastructure.

Large Deals Dominate the Market

Large-sized transactions (≥200,000 sq ft) played a defining role in shaping leasing trends in 2025:

• 16.7 million sq ft, or 45% of total leasing, came from large deals
• Delhi NCR, Chennai, Mumbai, and Hyderabad saw 50% or more of their leasing volumes coming from such large transactions

Within the e-commerce segment, nearly 61% of quarterly leasing occurred through large-format deals, driven by the expansion of fulfillment centers and regional distribution hubs.

In contrast, FMCG and retail occupiers leaned toward mid-sized warehouses (100,000–200,000 sq ft), reflecting the rise of hyperlocal and last-mile delivery models.

Key Transactions Highlight Scale of Demand

Some of the largest deals in 2025 underline the growing scale of industrial real estate requirements:

• Scootsy Logistics (Swiggy) leased 580,700 sq ft at One K Square, Bhiwandi
• Amazon took 500,000 sq ft at Welspun Logistics Park, Luhari (Delhi NCR)
• Honda leased 500,000 sq ft at Ascendas, Hoskote (Bengaluru)
• Jabil Inc. signed 385,000 sq ft at Ecobox Industrial Park, Pune

Q4 2025 alone saw marquee transactions from DHL, D-Mart, GE Vernova, and Hyundai Mobis, highlighting strong year-end occupier confidence.

Supply Pipeline Expands Amid Developer Confidence

Developers responded to sustained demand with aggressive supply additions. New completions reached 41.7 million sq ft in 2025, marking a 15% YoY increase — the highest level in recent years.

• Delhi NCR accounted for nearly 30% of total completions
• Q4 2025 alone added ~13 million sq ft, up 40% YoY

Despite rising supply, demand in active micro-markets kept vacancy levels rangebound at around 16%. Average rentals in key logistics clusters increased 5–10%, reflecting tightening availability in high-demand locations.

Outlook: Demand to Remain Concentrated in Core Markets

Commenting on the outlook, Vijay Ganesh, Managing Director – Industrial & Logistics Services, Colliers India, said strong Q4 performance, large deal sizes, and sustained developer confidence indicate long-term growth momentum, supported by government focus on manufacturing and logistics infrastructure.

Vimal Nadar, National Director & Head – Research, Colliers India, added that Delhi NCR, Chennai, Mumbai, and Pune are expected to cumulatively account for 70–80% of industrial & warehousing demand in 2026, backed by established industrial ecosystems and superior connectivity.

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

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Mumbai Powers National Growth With 47% Share

Mumbai emerged as the largest contributor, accounting for nearly half (47%) of India’s total absorption in Q3 2025. The city recorded 4.29 million sq ft, marking a 377% QoQ and 10% YoY increase.

Much of the demand centered around micro-markets such as:

• Bhiwandi
• Panvel

These two locations alone accounted for 96% of Mumbai’s absorption, signaling renewed confidence from occupiers in India’s most active logistics hub.

City-Wise Absorption Snapshot (Key Pointers)

• Mumbai: 4.29 mn sq ft | +377% QoQ | +10% YoY
• Kolkata: 1.26 mn sq ft | +950% QoQ | +186% YoY (highest ever for the city)
• NCR: 1.28 mn sq ft | +83% QoQ | -40% YoY
• Chennai: 1.13 mn sq ft | +151% QoQ | +38% YoY (best performance in 7 quarters)
• Hyderabad: 0.47 mn sq ft | +7% QoQ | -14% YoY
• Pune: 0.64 mn sq ft | -31% QoQ | -87% YoY (continued decline for 4th quarter)
• Bengaluru: 0.13 mn sq ft | -94% QoQ | -90% YoY (lowest among top cities)

Kolkata Records Its Highest-Ever Quarterly Absorption

Kolkata surprised the market with an extraordinary 950% QoQ surge, touching 1.26 million sq ft — its best performance on record. The spike reflects pent-up demand and large-scale commitments by occupiers.

Southern Markets Show Mixed Trends

• Chennai posted a strong comeback with its highest absorption in nearly two years.
• Hyderabad remained steady but saw a slight YoY decline.
• Bengaluru recorded an unusually weak quarter, marking the lowest absorption among major markets.

Pune’s Four-Quarter Decline Continues

Once a consistent performer, Pune saw absorption slide for the fourth consecutive quarter, driven by weakening occupier interest and delayed expansions.

Sector Outlook: E-commerce and 3PLs Driving Revival

Shrinivas Rao, FRICS, CEO of Vestian, said renewed demand from E-commerce and 3PL (third-party logistics) players is driving the turnaround:

“Mumbai, Kolkata, and NCR are leading the revival. The resurgence in occupier demand, coupled with momentum in e-commerce and 3PL, shows the sector’s strengthening fundamentals. Network optimisation and Grade-A warehouse preferences will reshape the market in coming quarters.”

Also Read: Industrial and Warehousing real estate industry

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India’s warehousing and industrial real estate sector continues to fire on all cylinders, driven by manufacturing expansion, supply chain diversification, and a sharp rebound in e-commerce. According to Knight Frank India’s Q3 2025 Industrial and Warehousing Market Report, leasing activity touched 17.1 million sq ft during the quarter — a 16% year-on-year jump — while year-to-date (YTD) volumes surged 32% to 49.2 million sq ft, putting the sector on track for another record-breaking year.

Manufacturing Takes the Lead

Manufacturing was the undisputed growth driver in India’s warehousing market this quarter.

• 44% of total Q3 2025 transactions came from the manufacturing sector (excluding FMCG/FMCD).
• Leasing activity from manufacturing occupiers rose 56% YoY during the first nine months of 2025.
• The sector continues to benefit from India’s Make-in-India momentum, PLI schemes, and reshoring of supply chains from China and other Asian hubs.

“India’s industrial and warehousing landscape continues to strengthen on the back of manufacturing expansion, supply chain diversification, and improving logistics efficiency,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

3PL and E-Commerce Drive Momentum

While manufacturing led demand, 3PL (third-party logistics) and e-commerce occupiers were close behind:

• 3PL operators absorbed 27% of total space YTD, up 17% YoY as companies increasingly outsourced storage and distribution.
• E-commerce leasing surged 137% YoY in Q3, reaching 2.5 million sq ft, its highest level since early 2023.
• The rebound reflects festive-season inventory stocking, faster delivery expectations, and growth in Tier II & III city consumption.

Mumbai and NCR: The Growth Champions

Among India’s top warehousing markets, Mumbai and NCR emerged as standout performers, contributing nearly 30% of total national volumes.

Key highlights:

• Mumbai:
  • Recorded a 123% jump in quarterly leasing and 75% YTD growth, touching 10 million sq ft — the highest in three years.
  • Contributed 20% of India’s total warehousing activity in 2025 so far.
  • Demand surged across Bhiwandi, Taloja, and Navi Mumbai, driven by strong manufacturing and logistics occupiers.
• Delhi NCR:
  • Leasing grew 93% YoY in Q3 and 50% YTD, reaching 8.8 million sq ft.
  • Driven by the expansion of automotive and 3PL hubs across Ghaziabad, Faridabad, and Sohna.

Other top-performing cities — Chennai, Pune, and Bengaluru — also reported robust leasing, each hitting their highest YTD volumes in three years. Chennai, in particular, saw 62% YoY growth, driven largely by manufacturing occupiers accounting for 62% of local demand.

Warehousing Supply and Quality Shift

Knight Frank notes that India’s total industrial and warehousing stock now stands at 530 million sq ft across the top eight cities.

• 17.5 million sq ft of new supply came online in Q3 2025 alone.
• Grade A spaces accounted for 84% of new supply, underscoring the growing emphasis on automation, ESG compliance, and safety standards.
• Vacancy rates stood at 12.2% overall, but Grade A assets saw slightly higher vacancy (13%) due to fresh speculative supply being added.

Rents on the Rise

Steady demand and premium-quality projects have led to rents increasing by 3–4% YoY across major cities.

• Mumbai’s average rentals rose 4% YoY to ₹24.9 per sq ft per month.
• Chennai, Bengaluru, and Pune also witnessed similar upward movement.
  Developers are focusing on institutional-grade parks with improved connectivity and compliance, keeping rents firm despite strong new supply.

What’s Driving the Sector’s Next Phase

According to Knight Frank, three major shifts are shaping the next phase of India’s industrial and warehousing growth:

1. Manufacturing resurgence under government-led incentives such as PLI and Make in India.
2. Supply chain diversification, as companies relocate or expand manufacturing and storage bases to India.
3. E-commerce and 3PL optimization, boosting warehousing footprints closer to consumption centers.

With these drivers, India’s logistics and industrial real estate is evolving into one of the most resilient growth stories of the decade.

Expert Outlook

“Demand remains broad-based, with Grade A facilities now accounting for 61% of total occupier take-up. The sector is poised for long-term, high-quality growth supported by strong business sentiment and policy stability,” added Shishir Baijal, CMD, Knight Frank India.

The outlook remains optimistic as manufacturing continues to gain traction and India cements its position as a global supply chain alternative, reinforcing warehousing as a vital link in the country’s infrastructure-led growth story.

Also Read: The India growth story: Office, Residential, and warehousing sectors outperform the industry

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This growth is not just a number — it’s the invisible backbone behind the faster deliveries, seamless logistics, and growing online shopping ecosystem that millions of Indians rely on every day.

Why Warehouses Matter to You

When you place an online order, stock up on groceries, or receive a new appliance — the journey begins in these warehouses.
Modern logistics parks today are hubs for:

• E-commerce fulfilment: Storing, sorting, and dispatching lakhs of orders daily.
• Engineering & manufacturing supply chains: Housing raw materials and finished goods.
• Third-party logistics (3PL): Outsourced storage and transport partners who keep the supply chain moving efficiently.

These facilities, strategically located near highways and city peripheries, make it possible for goods to reach homes and businesses within hours.

Key Highlights of the 2025 Performance (Jan–Sep)

• Record Demand: 26.5 million sq. ft. leased — up 11% YoY, highest ever for this period.
• Top Cities Driving Growth: Delhi NCR, Chennai, and Mumbai together account for over 60% of total demand.
• Sector Mix:
  • 3PL firms lead with one-third of total leasing.
  • Engineering sector contributes 20%, while E-commerce follows at 15% — a 2.5x increase over last year.
• New Supply: 28.8 million sq. ft. of new space delivered — up 6% YoY.
• Vacancy: Rose by 160 bps in Q3 as new supply slightly outpaced demand.

Where the Action Is

Major warehousing clusters are concentrated in:

• Bhiwandi (Mumbai) — a traditional logistics hub close to Mumbai city.
• Oragadam (Chennai) — driven by engineering and manufacturing.
• Hoskote (Bengaluru) — popular for large tech and automotive warehousing.
• Luhari & Farukh Nagar (Delhi NCR) — preferred by 3PL and e-commerce giants.

Developers are betting big on these locations due to their connectivity to major highways, robust infrastructure, and proximity to consumption centres.

Q3 2025 — A Temporary Slowdown

After a record-breaking Q2, demand in Q3 2025 moderated to 7 million sq. ft., down 23% YoY. This dip is being seen as a temporary breather before the festive season surge, which typically drives warehousing requirements for e-commerce, electronics, and FMCG firms.

Even as vacancy levels rose slightly, rentals in prime micro-markets remained firm, indicating occupiers’ continued preference for top-quality, sustainable spaces.

Expert View

“The sector’s resilience is remarkable. Large deals continue to drive leasing activity, with 3PL and e-commerce segments at the forefront. We expect warehousing demand to pick up further in the festive quarter, building on the strong volumes seen earlier this year,”
— Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India

What This Means for Consumers and Businesses

• Faster Deliveries: More warehouses near consumption hubs = shorter delivery times.
• Stable Prices: Efficient supply chains reduce logistics costs, helping businesses manage inflation.
• Job Creation: Warehousing clusters generate local employment in operations, transport, and support services.
• Infrastructure Growth: Industrial hubs spur development of roads, power, and connectivity in surrounding areas.

In short, while you might never step inside a logistics park, it’s quietly shaping your everyday life — from same-day delivery promises to ensuring your neighbourhood kirana never runs out of stock.

Also Read: Bhiwandi: Logistic firm Rents Property for ₹85 lac a month

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This marks a sharp reversal from previous years, where nearly half of all PE investments were concentrated in warehousing and logistics assets, fuelled by India’s e-commerce boom, manufacturing push, and 3PL expansion.

While overall private equity inflows into real estate fell 15% year-on-year to USD 2.2 billion in H1 FY26, the complete absence of Industrial & Logistics deals stands out as one of the most striking trends this year.

From 47% Share to 0%: The Numbers Tell the Story

“Industrial & Logistics was conspicuous by its absence this half-year, though investor interest remains high for quality assets,” notes the ANAROCK report.

Why the Slowdown Matters

The Industrial & Logistics segment is considered a backbone of India’s economic and consumption story. Warehousing parks, fulfilment centres, and last-mile logistics facilities support the rapid growth of e-commerce, manufacturing (PLI schemes), and urban distribution.

Between FY22 and FY25, this segment consistently attracted some of the largest institutional deals, as global investors like Blackstone, ESR, IndoSpace, and GIC bet big on India’s consumption-led growth.

The absence of deals this half-year does not indicate a lack of interest — instead, it reflects:

• Timing gaps: Several large deals are currently under negotiation but are yet to close.
• Valuation resets: Investors and developers are recalibrating prices amid changing cost structures and yield expectations.
• Regulatory & land issues: Acquiring large contiguous land parcels remains complex in key logistics corridors.

Investor Sentiment Still Positive

Despite the pause, institutional appetite remains strong. ANAROCK notes that “several transactions are currently under discussion, and some are likely to be closed in the coming months.”

Globally, logistics continues to be one of the most stable real estate asset classes. In India, strong consumption demand, growing 3PL activity, and supply chain diversification continue to support long-term investment interest.

Why Homebuyers Should Care

At first glance, Industrial & Logistics deals may seem far removed from residential buyers. But in reality, this segment plays a critical indirect role in shaping housing markets:

• Logistics hubs create jobs in manufacturing, warehousing, transport, and e-commerce. These hubs often drive new housing demand in peripheral areas.
• When investor funding slows, logistics park development can lag, affecting planned township and affordable housing projects near industrial belts.
• Many logistics corridors are linked to new transport infrastructure, which also benefits residential connectivity.

A slowdown here may temporarily delay ecosystem development around major logistics corridors like MMR outskirts, NCR peripheries, and Chennai–Bengaluru industrial belts.

Winners This Year: Retail, Offices & Data Centres

While Industrial & Logistics took a back seat, Commercial Office assets took a 40% share, Retail 17%, and Mixed-use 19%. Data Centres, too, attracted 5% of inflows — a sign of diversification in investor focus.

Also Read: Warehousing & Logistics sector shows resilience amidst Investment drought 

The post 🏭 Industrial & Logistics Saw No Deals This Half-Year — A Surprising Pause in India’s Real Estate Growth Story appeared first on Square Feat India.

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.

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New Delhi, 17 July 2025 — India’s industrial and warehousing sector has witnessed a historic first half of the year, with Grade A space leasing touching 19.5 million sq ft across top eight cities — marking a 33% year-on-year (YoY) growth, according to Colliers India.

Key Highlights: H1 2025 Industrial & Warehousing Trends

City-Wise Performance in Grade A Leasing – H1 2025

Bhiwandi (Mumbai) was the most active micro market with 3.1 mn sq ft space take-up, followed by Oragadam (Chennai) at 1.5 mn sq ft.

Demand Drivers: 3PL Still Dominates, Engineering & E-commerce Catch Up

Third Party Logistics (3PL) companies led leasing activity with 32% share.
Engineering, E-commerce, and Auto sectors also saw robust leasing, each contributing 10–20% of total demand.

“This heterogeneity of demand reflects the sector’s resilience and aligns with India’s broad-based economic growth,”
– Vimal Nadar, National Director & Head of Research, Colliers India

Larger Deals (200,000+ sq ft) Account for Half of All Leasing

About 51% of all leases in H1 2025 came from large format deals.
Delhi NCR and Mumbai led in big-ticket transactions.
Most large deals came from 3PL, e-commerce, and engineering occupiers.

New Supply Keeps Pace with Demand

India added 19.4 mn sq ft of Grade A warehousing in H1 2025 — a strong 11% annual rise, matching leasing levels and reflecting developer confidence.

Grade A Supply by City – H1 2025

“Q2 2025 alone saw 10 mn sq ft of completions — the highest quarterly addition in recent years,”
– Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India

Outlook for 2025: 35–40 Mn Sq Ft of New Supply Expected

With rising absorption and high-quality Grade A developments underway, total new supply for 2025 is expected to reach 35–40 mn sq ft. The sector is well positioned for continued expansion in H2 2025, especially in key logistics hubs.

Also Read: Warehousing & Logistics sector shows resilience amidst Investment drought 

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This surge in sustainable storage space underscores the profound shifts underway in India’s logistics and industrial real estate markets as institutional investors and large corporate occupiers align with Net Zero commitments and global ESG mandates.

“India’s green warehousing transformation is driven not only by institutional investor-backed developers but also by corporate occupiers. Most corporates have Net Zero goals, making Green Certified warehouses non-negotiable,”
Yogesh Shevade, Head – Industrial & Logistics, India, JLL.

India Warehousing Growth Snapshot

Key Drivers of the Green Surge

• Institutional Investment:
  Institutional Grade A warehousing space has tripled since 2019, with over 45% of the 90 million sq. ft. institutional portfolio already certified under LEED, IGBC, GRIHA, or similar green standards. An additional 20% is either pre-certified or in the process of certification.
• Corporate Net Zero Targets:
  Companies are prioritizing sustainable facilities to achieve 30–40% energy savings, water conservation, waste recycling, and improved operational efficiency.
• E-Commerce and Modernization:
  The expansion of e-commerce has driven demand for high-quality, future-ready warehouses.

Breakdown of Institutional Grade A Green Warehousing (2024)

Institutional Pipeline by 2030

By 2030, institutional developers are expected to contribute approximately 260 million sq. ft. of Grade A space, representing 70% of forecasted Grade A supply and 80% of compliant green warehouse supply.

“Post-Covid, institutional investment has doubled in warehousing. Developers have realized that MNC tenants demand Green Certified assets—it’s simply a baseline expectation,”
JLL Research.

Looking Ahead

JLL analysts highlight that apart from new construction, retrofitting existing non-green Grade A warehouses remains a significant opportunity. Funding avenues and incentives for upgrading older stock will be essential to fully future-proof India’s warehousing assets.

Also Read: Chennai Delhi NCR warehousing

The post India’s Green Warehousing Footprint to Quadruple by 2030 appeared first on Square Feat India.

The project, located within the JNPA Special Economic Zone (SEZ) in Navi Mumbai, spans 55 acres and represents Welspun One’s largest logistics development to date. Designed as a Grade A industrial and warehousing facility, the park will cater to key sectors such as e-commerce, third-party logistics (3PL), fast-moving consumer goods (FMCG), and manufacturing.

With a total development potential of over 3.6 million square feet, the logistics park aims to redefine operational efficiency and scalability, strengthening India’s position as a global supply chain hub.

“This financial closure is a pivotal milestone in our journey to build world-class logistics infrastructure in India,” said Anshul Singhal, Co-Founder and Managing Director, Welspun One. “With NaBFID’s support, we are well-positioned to fast-track execution and deliver long-term value to our stakeholders. The JNPA project will set new benchmarks for the industry.”

NaBFID, established to catalyze investments in infrastructure, has extended a 22-year term loan for the project—an indication of both the project’s scale and NaBFID’s confidence in its long-term impact.

“We are proud to support Welspun One’s JNPA Logistics Park, a project aligned with the Government’s vision to reduce logistics costs to around 8% of GDP,” said Rajkiran Rai, Managing Director, NaBFID. “Projects like this will enhance India’s industrial competitiveness globally.”

Echoing the sentiment, Samuel Joseph, Deputy Managing Director, NaBFID, added, “Our mandate allows us to fund infrastructure projects with long gestation periods. The JNPA park stands out for being located in an SEZ and built to international specifications—making it a unique opportunity.”

The transaction was facilitated with support from a team of expert partners: CBRE provided technical due diligence, Saraf & Partners offered legal advisory, and BDO ensured financial compliance and verification.

This funding milestone further cements Welspun One’s position as a leading developer of institutional-grade warehousing and logistics parks, contributing meaningfully to India’s evolving infrastructure and economic ambitions.

Also Read: Bengaluru’s Warehouse Absorption Rises to 3.9 Mn Sq. ft.

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