Significant 203% Surge in India's Warehousing Investments for 2024
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Synopsis
In 2024, India's warehousing and logistics sector attracted $1.96 billion in investments, making up 29% of the total institutional investment in real estate. The sector experienced a remarkable 203% year-on-year growth, reflecting increased demand driven by quick commerce expansion and government initiatives.
Key Takeaways
- Investment in warehousing reached $1.96 billion in 2024.
- Absorption increased by 19% to 44.9 million sq ft.
- Mumbai led with 18.6 million sq ft absorbed.
- Third-party logistics accounted for 33% of absorption.
- Government initiatives propelled manufacturing sector growth.
New Delhi, March 20 (NationPress) The Indian warehousing and logistics domain witnessed a remarkable investment influx of $1.96 billion in 2024, representing 29 percent of the total institutional investment accumulated in the real estate sector last year, according to a report released on Thursday.
As indicated in the report by Vestian, investment inflows in this sector experienced a staggering 203 percent year-on-year growth, fueled by the increasing need for warehouses amidst the swift growth of the quick commerce industry.
This escalating demand led to a historic absorption of 44.9 million square feet (sq ft) in 2024, which is a 19 percent rise compared to the previous year.
In particular, the latter half of 2024 alone recorded 28.3 million sq ft of absorption, marking a 70 percent increase relative to the first half of 2024 — the highest ever documented within a single calendar year.
“India’s role as a pivotal logistics center is poised to strengthen, supported by favorable investor sentiments, announcements in the Union Budget 2025-26, and strong domestic demand,” stated Shrinivas Rao, FRICS, CEO of Vestian.
The government’s persistent emphasis on major infrastructure projects is anticipated to further drive growth in the sector.
A significant portion of the absorption in 2024 was attributed to third-party logistics (3PL) firms, which accounted for 33 percent of national absorption.
The contribution of the engineering and manufacturing sector rose from 18 percent in 2023 to 24 percent in 2024, driven by various government initiatives like the production-linked incentive (PLI) scheme and the ‘Make in India’ initiative.
Mumbai reported the highest absorption at 18.6 million sq ft in 2024, experiencing an 82 percent increase from the previous year.
The notable surge in absorption is credited to enhanced intercity connectivity via the Navi Mumbai airport and the growth of quick commerce in prominent tier-1 cities.
Pune saw an 85 percent increase in absorption, the highest growth among the top seven cities. Chennai, Hyderabad, and Kolkata accounted for 15 percent of the national absorption in 2024, reflecting a decline from 22 percent a year prior, as reported.
