Annual warehousing transactions increases to 76.2 mn sq ft by FY26
WAREHOUSING & LOGISTICS

Annual warehousing transactions increases to 76.2 mn sq ft by FY26

Annual warehousing transactions in the primary markets will increase at a compound annual growth rate of 19% to 76.2 million sq ft by FY26 from 31.7 million sq ft in FY21, according to a recent report by Knight Frank titled ‘India Warehousing Market Report 2021’.

A recent report by Savills India also shows that the leasing of industrial and warehousing spaces across 8 major cities increased by 35% during 2021, wherein the fresh supply increased by 64%. With such a great expansion, the sector has established itself as one of the most resilient asset classes that continues to bring important capital.

The pandemic has certainly played a key catalytic role in promoting the logistics industry. With a drastic shift toward digitisation and contactless operations, customers that traditionally worked offline went online. This resulted in a great explosion of D2C brands aiming to get the very best of their products directly to the customers’ doorstep.

This further highlighted the importance of smoothening the whole supply chain of doorstep delivery. Also, the increased requirement for oxygen cylinders, essential supplies, vaccines, food, etc made quick and timely distribution a focus.

There was a major boom in the e-commerce sector. It accelerated the speed of the industry to satisfy the consumers’ needs for increased home shopping demands and shed light on the significance of last-mile delivery.

Grade-A warehouses appeared as the one-stop solution, and their demand saw a major uptick. The Savills report also validates this by showing that the warehousing demand in 2021 was driven by e-commerce firms and third-party logistics players for 62% of the total absorption, followed by the manufacturing sector at 14%. Grade-A warehouses are gigantic spaces that allow storing, promote efficient operations of the supply chain of any business, and are made with modern amenities, state-of-the-art infrastructure & technology to provide competencies.

Moreover, with limited space within the existing parks, businesses are often compelled to settle for alternate areas, far from the city.

Image Source

Also read: Indian warehousing faces stiff challenge due to surging land prices

Annual warehousing transactions in the primary markets will increase at a compound annual growth rate of 19% to 76.2 million sq ft by FY26 from 31.7 million sq ft in FY21, according to a recent report by Knight Frank titled ‘India Warehousing Market Report 2021’. A recent report by Savills India also shows that the leasing of industrial and warehousing spaces across 8 major cities increased by 35% during 2021, wherein the fresh supply increased by 64%. With such a great expansion, the sector has established itself as one of the most resilient asset classes that continues to bring important capital. The pandemic has certainly played a key catalytic role in promoting the logistics industry. With a drastic shift toward digitisation and contactless operations, customers that traditionally worked offline went online. This resulted in a great explosion of D2C brands aiming to get the very best of their products directly to the customers’ doorstep. This further highlighted the importance of smoothening the whole supply chain of doorstep delivery. Also, the increased requirement for oxygen cylinders, essential supplies, vaccines, food, etc made quick and timely distribution a focus. There was a major boom in the e-commerce sector. It accelerated the speed of the industry to satisfy the consumers’ needs for increased home shopping demands and shed light on the significance of last-mile delivery. Grade-A warehouses appeared as the one-stop solution, and their demand saw a major uptick. The Savills report also validates this by showing that the warehousing demand in 2021 was driven by e-commerce firms and third-party logistics players for 62% of the total absorption, followed by the manufacturing sector at 14%. Grade-A warehouses are gigantic spaces that allow storing, promote efficient operations of the supply chain of any business, and are made with modern amenities, state-of-the-art infrastructure & technology to provide competencies. Moreover, with limited space within the existing parks, businesses are often compelled to settle for alternate areas, far from the city. Image Source Also read: Indian warehousing faces stiff challenge due to surging land prices

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?