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Warehousing cos torn between rising demand and flat rentals
September 22, 2025
|Business Standard
Turn to external capital to maintain profitability, growth
Warehousing players are facing a double whammy with demand from ecommerce and third-party logistics players outpacing supply yet rentals remaining flat and land and construction costs continue to climb, leading to pressure on margins.
The result, warehousing companies are turning to external capital to maintain profitability and growth. Sector watchers say rentals would eventually have to rise but competition from unorganised players is preventing any sharp corrections.
Pan-Indian average warehousing rent stood at ₹22 per square foot (psf) in H1 2025, up slightly from ₹20 psf in H1 2022, according to Vestian.
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