Over 15 Tier-II cities witness surge in warehousing demand

Tier-II cities in India are experiencing greater warehousing absorption with big companies, including Amazon, Flipkart, Reliance, Udaan, among others. Third-party logistics firms are taking large warehousing spaces to scale up operations to meet consumer needs. Over 15 small cities like Lucknow, Raipur, Vadodara and Bhopal are witnessing greater warehousing demand since the beginning of the Covid-19 pandemic. According to the industry experts, these cities are experiencing around 100,000 to 200,000 sq ft deals, compared to 25,000 to 50,000 sq ft deals earlier. In the next five years, the e-commerce segment may take up to 98 million sq ft, with 165 per cent growth from 2017-2021.