Press Release: 20 February,

Key trend emerging now is the growing demand for warehousing and logistics space from tier II cities like Coimbatore, Guwahati, Lucknow, Jaipur & Ludhiana. 

Mumbai: Riding on structured reforms including the infrastructure NSE 0.27 % status and the implementation of Goods & Services Act, Indian warehousing and logistics sector is estimated to attract nearly $10 billion investments over the next 4-5 years. With addition of around 200 million sq ft warehousing space across India, total supply is expected to nearly double by 2022, estimated JLL India. With e-commerce players expanding operations across the country, there has been a corresponding rise in demand for space from these companies in both tier I and II markets and this is expected to add to robust growth in Delhi NCR, Mumbai, Pune, Bengaluru and Chennai markets. 

“Warehousing and logistics sector has been growing steadily since 2017, when it was granted an infrastructure status. Structured reforms such as the implementation of Goods and Services Act, the formation of a Logistics Department under the ministry of commerce and industry and various other policy changes have directly or indirectly resulted in sector’s growth of the sector,” said N Srinivas, managing director, industrial services, JLL India.

While the year 2018 witnessed a 22% year-on-year growth in total stock in Grade A & B warehousing space in top eight cities at 169 million sq ft compared to 138 million sq ft ft year ago, absorption clocked an unprecedented growth of 60% year-on-year growth to nearly 32 million sq ft last year from around 20 million sq ft in 2017. The robust growth in absorption reflects demand outstripping supply significantly and vacancies dropping below 10% level for the first time ever, showed data from JLL India. 

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