India's Industrial and Logistics Construction Set to Surpass 60 Million Square Feet: Report
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New Delhi, Dec 3 (NationPress) India's rapid urbanization, robust infrastructure development, and economic growth have collectively driven substantial demand, which has resulted in a boost in construction activities within the industrial and logistics sectors. This activity is expected to surpass 60 million square feet each year over the next 3-4 years, as indicated by a report released on Tuesday.
According to a report from Savills India, a global real estate advisory firm, "On average, there was a 3.4% to 6.7% rise in construction costs for general manufacturing and a 4.8% to 6.7% increase for grade-A warehousing from H1 2020 to H1 2024."
The report also highlighted that "Among cities, Kolkata saw the highest increase in general manufacturing costs at 6.7%, while Chennai followed closely with a 6.5% rise. For grade-A warehousing, Chennai led the way with a 6.7% increase, with both Bengaluru and Hyderabad each experiencing a 6% increase."
"This rise can be linked to the increasing prices of crude oil, steel, aluminium, cement, labor, equipment rentals, and costs related to plumbing and fixtures," the report states.
Sumit Rakshit, Managing Director of Project Management Services at Savills India, commented, "India is establishing itself as a global manufacturing hub. As a result, the demand for both manufacturing and warehousing facilities is expected to surge in the coming years. We anticipate a slight increase in construction costs for industrial and warehousing projects over the next 3-4 years."
The report further states, "Despite the rising costs, India remains cost-competitive, with construction expenses for manufacturing and warehousing significantly lower than those in developed countries like the US, UK, France, and Germany, thanks to affordable labor and relatively lower material costs."
Srinivas N, Managing Director of Industrial and Logistics at Savills India, remarked, "The manufacturing and warehousing industries are witnessing considerable construction activity driven by increasing market demand, supportive government policies, and growth in sectors such as FMCG, FMCD, electronics, apparel, EV, and related industries."
He added, "The evolving preferences of occupiers to align with ESG (Environmental, Social, and Governance) standards are likely to stimulate the demand for sustainable and energy-efficient buildings, promoting the adoption of green construction practices in both the industrial and warehousing sectors."
