What is driving industrial and warehousing demand?
Commercial Design|February 2020
Indian industrial and warehousing sector witnessed an investment inflow of INR254 billion, which is likely to touch INR495 billion by 2021
What is driving industrial and warehousing demand?

In the past, the Indian industrial and warehousing sector has been characterized by fragmented sheds and godowns. However, led by demand for larger facilities from e-commerce companies, the sector is becoming more organized. Transformation is brought about by government initiatives, global trade dynamics, an influx of technology and evolving consumption patterns. Occupier preferences are changing and investor interest is increasing.

“Occupiers mulling large contiguous warehouse leases, especially in the e-commerce and 3PL sectors, should look at select micromarkets in Mumbai and Pune that offer a good mix of industrial and multi-purpose warehouses. Bengaluru should also be explored as it offers seamless transfer of goods between states, benefitting from the removal of state-level taxes”, said Sankey Prasad, MD & chairman at Colliers International India.

The industrial and warehousing sector in India has attracted significant investor interest since 2017 led by robust demand from e-commerce and other consumer-led occupiers. As per Colliers Research, the sector has attracted interest from multiple large institutional investors since 2017, with investment inflows of INR254 billion (USD3.6 billion), signifying a large pool of capital available for investment in this sector. We project the investment inflow is likely to touch INR495 billion (USD7 billion) by 2021 as existing participants expand their portfolio and new players enter the market.

Factors driving industrial and warehousing demand

The Indian industrial and warehousing sector is benefiting from government policy initiatives such as the Goods and Services Tax (GST) implementation and Make in India program, as well as global trade dynamics and evolving consumption patterns. The initiatives augmented growth and private sector participation in a sector which was not well-regulated.

This story is from the February 2020 edition of Commercial Design.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the February 2020 edition of Commercial Design.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM COMMERCIAL DESIGNView All
DESIGNING ICONS
Commercial Design

DESIGNING ICONS

There's a glistening new silhouette amid the Dubai skyline. As home to the world's longest cantilevered building, it's both an architectural marvel and the city's new culinary hot spot.

time-read
2 mins  |
March 2024
CREATING DYNAMIC WORKPLACE ECOSYSTEMS
Commercial Design

CREATING DYNAMIC WORKPLACE ECOSYSTEMS

Discover the innovative and human-centric design philosophy of Studio99 DesignCell, as Poonam and Aniket Pawar, the two founding partners of the firm, illuminate their approach to creating dynamic ecosystems that inspire collaboration, foster creativity, and enhance well-being in the workplace

time-read
5 mins  |
March 2024
CRAFTING STORIES: A PEEK INSIDE PENGUIN RANDOM HOUSE INDIA'S VIBRANT OFFICE
Commercial Design

CRAFTING STORIES: A PEEK INSIDE PENGUIN RANDOM HOUSE INDIA'S VIBRANT OFFICE

SJK Architects have ingeniously designed the Penguin Random House India office, fostering collaboration and storytelling through versatile clusters, thematic artwork, and subtle brand integration

time-read
3 mins  |
March 2024
CATALYSING NEXT-GEN WORKPLACES
Commercial Design

CATALYSING NEXT-GEN WORKPLACES

The 14th Smart Office India Summit 2024 in Chennai brought together leaders to explore emerging workplace trends, focusing on sustainable practices and flexible environments, shaping the future of smart offices.

time-read
2 mins  |
March 2024
GREEN FOUNDATIONS
Commercial Design

GREEN FOUNDATIONS

Mohamad Ballout, Director of MEP Engineering at KEO, on how the company is leading the integration of innovative sustainability strategies within its MEP projects

time-read
4 mins  |
March 2024
GOING GREEN
Commercial Design

GOING GREEN

Sustainable initiatives in FM for a greener future

time-read
3 mins  |
March 2024
BUILDING FOR THE FUTURE
Commercial Design

BUILDING FOR THE FUTURE

The importance of implementing sustainability in real estate development

time-read
3 mins  |
March 2024
REDEFINING THE BLUEPRINT OF CORPORATE WORKPLACES
Commercial Design

REDEFINING THE BLUEPRINT OF CORPORATE WORKPLACES

Ramesh Nair, CEO, Mindspace Business Parks REIT, illuminates the company's pioneering efforts in crafting dynamic, community-centric workspaces that prioritise tenant well-being and foster a sense of belonging, positioning Mindspace. as a frontrunner in the evolution of modern office environments.

time-read
6 mins  |
March 2024
AirBrick Infra launches an AI-driven design library for office designs.
Commercial Design

AirBrick Infra launches an AI-driven design library for office designs.

AirBrick Infra, a tech-enabled commercial design and build organisation specializing in creating innovative and functional design solutions that transform commercial spaces announced the launch of its tool-Design Library.

time-read
1 min  |
January 2024
Massive $25 billion asset creation on the horizon for RMZ Corp
Commercial Design

Massive $25 billion asset creation on the horizon for RMZ Corp

Menda brothers owned RMZ Corporation has unveiled its transition into an alternate asset owner.

time-read
1 min  |
January 2024