Over 15 tier-2 cities witness surge in warehousing demand
WAREHOUSING & LOGISTICS

Over 15 tier-2 cities witness surge in warehousing demand

Tier-2 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% growth from 2017-2021. Some private equity funds are also looking to invest in secondary cities in India.

ESR and Indospace are stepping into investment in industrial and warehousing space in smaller cities across the country. CEO of ESR India, Abhijit Malkani, said there is a huge interest from institutional funds to invest in the warehousing and logistics sector in the country. The demand is also higher from the side of the e-commerce and third-party logistics industry.

CapitaLand again launched its logistic investment fund of Rs 2,250 crore to grow India's logistics sector. CEO of Ascendas-Firstspace, Aloke Bhuniya, said that the second fund would help to increase the geographical footprint of the company, as it is looking at tier-2 cities and their size would depend on the demand. The smaller towns in the country would have to be controlled by the nearest metro hubs.

Chandranath Dey, head, operations, and business development of logistics and industries of Jones Lang LaSalle Inc.

(JLL) India, said that the fund would expand capital in Kolkata, Jaipur, Guwahati, Coimbatore and Lucknow. As the customer demand grows, consumption in tier-3 and tier-2 cities are increasing due to disposable income, affordability and aspirations.

Image Source


  Also read: E-commerce boom to boost warehousing in India

Tier-2 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% growth from 2017-2021. Some private equity funds are also looking to invest in secondary cities in India. ESR and Indospace are stepping into investment in industrial and warehousing space in smaller cities across the country. CEO of ESR India, Abhijit Malkani, said there is a huge interest from institutional funds to invest in the warehousing and logistics sector in the country. The demand is also higher from the side of the e-commerce and third-party logistics industry. CapitaLand again launched its logistic investment fund of Rs 2,250 crore to grow India's logistics sector. CEO of Ascendas-Firstspace, Aloke Bhuniya, said that the second fund would help to increase the geographical footprint of the company, as it is looking at tier-2 cities and their size would depend on the demand. The smaller towns in the country would have to be controlled by the nearest metro hubs. Chandranath Dey, head, operations, and business development of logistics and industries of Jones Lang LaSalle Inc. (JLL) India, said that the fund would expand capital in Kolkata, Jaipur, Guwahati, Coimbatore and Lucknow. As the customer demand grows, consumption in tier-3 and tier-2 cities are increasing due to disposable income, affordability and aspirations. Image Source  Also read: E-commerce boom to boost warehousing in India

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code