The warehousing sector has witnessed an upward trend due to a conducive environment, explains RAJESH JAGGI Booming e-commerce, online retail and manufacturing industries have fostered the expeditious growth of the warehousing and logistics sector in India. As the economy evolves, methodical and sophisticated systems are being put together to facilitate the fluid movement of goods as well as their efficient storage. In 2018, we witnessed a 22 per cent year-on-year growth in the total stock of Grade A and B warehousing in the top eight cities at 169 million sq ft, compared to 138 million sq ft in 2017.
Absorption too showed unparalleled growth in 2018 – 60 per cent year-on-year growth from 20 million sq ft in 2017 to around 32 million sq ft in 2018. This has led to massive investments in the sector. According to estimates made by JLL, the logistics and warehousing sector in India is expected toattract $10 billion investments over the next five years.
Another industry report reveals that private equity (PE) funds have invested in an excess of $1.1 billion in the sector between the first quarter of 201