According to a report released on Thursday, the Indian warehousing industry attracted investments totaling $1.6 billion between January and June of this year, which represents 42% of all institutional investment received in the real estate sector during the same period.
Investments in H1 2024 accounted for one-third of all institutional investment received during the previous four years, as major economies across the world began to expand and the number of international investors in the Indian warehousing sector expanded.
Furthermore, a Vestian analysis states that investments climbed by 4.5 times in H1 2024 compared to H1 2023.
“Recent government announcements to boost infrastructure developments are likely to reduce logistics costs from 8-9 per cent to 5-6 per cent of the GDP, which, in turn. will lead to an increase in real estate activities in the warehousing sector,” stated Shrinivas Rao, FRICS, Vestian
16.6 million square feet were absorbed in the first half of this year, an 8 percent rise from the same period last year. In H1 2024, the combined share of Mumbai and Pune accounted for 63% of the entire absorption.
In H1 2024, absorption was led by third-party logistics (3PL) organizations, with a 39 percent share.
Comparably, from 16% and 4% in H1 2023 to 22% and 9% in H1 2024, respectively, the shares of the engineering and manufacturing and automotive and auto component industries also increased.
In H1 2024, weighted average rentals decreased by 3% to Rs 21.6 per square foot per month compared to the same time the previous year.
According to the survey, Hyderabad saw a 7% reduction in rentals during the same period, while Bengaluru saw the largest decline of 8%.
According to a report released on Thursday, the Indian warehousing industry attracted investments totaling $1.6 billion between January and June of this year, which represents 42% of all institutional investment received in the real estate sector during the same period.
Investments in H1 2024 accounted for one-third of all institutional investment received during the previous four years, as major economies across the world began to expand and the number of international investors in the Indian warehousing sector expanded.
Furthermore, a Vestian analysis states that investments climbed by 4.5 times in H1 2024 compared to H1 2023.
“Recent government announcements to boost infrastructure developments are likely to reduce logistics costs from 8-9 per cent to 5-6 per cent of the GDP, which, in turn. will lead to an increase in real estate activities in the warehousing sector,” said Shrinivas Rao, FRICS, CEO, Vestian.
The first half this year witnessed an absorption of 16.6 million square feet, showcasing an increase of 8 per cent over the same period a year earlier. Mumbai and Pune together accounted for 63 per cent of the total absorption in H1 2024.
Third-party logistics (3PL) companies dominated absorption with a 39 per cent share in H1 2024.
Comparably, from 16% and 4% in H1 2023 to 22% and 9% in H1 2024, respectively, the shares of the engineering and manufacturing and automotive and auto component industries also increased.
In H1 2024, weighted average rentals decreased by 3% to Rs 21.6 per square foot per month compared to the same time the previous year.
According to the survey, Hyderabad saw a 7% reduction in rentals during the same period, while Bengaluru saw the largest decline of 8%.
