Warehousing Space Lease Growth In India

India’s Warehousing Space Leasing activity in the field of industrial and warehousing segment is expected to reach the figure of 20 million sq ft in 2018, which is 17% up from the year 2017. The industrial and warehousing segment has attained significant momentum over a couple of years, if we talk about leasing in 2016, it is 10 million sq ft, and in 2017 it is 17 million sq ft said a CBRE South Asia report.

If we talk about from the investment perspective, increase in transparency & the successful implementation of numerous regulatory reforms is giving an incentive to the sector. CBRE expects in coming years we are going to witness a massive capital inflow into the real estate market.

Anshuman Magazine, Chairman, India and South East Asia, CBRE said, “We expect 2018 to be the turnaround year for the real estate ecosystem in India. Significant infrastructure development across key cities, improvement in ease of doing business, a renewed focus on attracting investments in the sector and enhanced transparency is changing the market dynamics. As a significant contributor to India’s GDP, there is immense opportunity for the real estate sector to influence the growth prospects of the country.“


1. Increase In leasing activity: Demand for warehousing locations is going to touch 20 million sq. Ft. in the year 2018; which is primarily led by 3PL and e-commerce players.

2. Increase in investment: After the successful implementation of GST, logistics & warehousing sector is appearing as an excellent asset. Investors and private equity players are in search of great properties to invest. Recognizing long term benefits developers are trying to develop large, quality warehousing facilities to attract investors.

3. Technology will lead the market: Supply chain companies are rapidly embracing IT solutions to manage inventory. Use of fleet management software, RFID systems and automation is rising fast.

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