Archive · 8 Jun 2025
India’s Warehouse Sector Navigates a New Phase
Indian warehouses, where businesses store goods, are still doing well but are slowing down a bit.
A lot of companies were investing, but now they're being more careful and choosing the best, most modern warehouses.
Experts believe that the fast growth is over, and the sector will keep growing steadily.
Some investors are being cautious because of things like economic uncertainty and changing prices.
They're also looking for places that will make them good returns, like the high-quality Grade A warehouses.
India's warehouse sector is transitioning from rapid growth to a more stable phase.
Grade A warehouse stock grew significantly, reaching 183 million sq.ft. in 2023-24.
Warehousing accounted for 45% of private equity investments in Indian real estate in 2024.
Investors are now more selective, prioritizing Grade A assets and sustainable warehouses.
Experts predict a steady annual growth rate of 7-10% for the sector.
- Who
- Investors, developers, and industry experts.
- What
- The Indian warehouse sector is undergoing a transition from rapid growth to more stable performance.
- When
- Recent years; with a focus on the current transition.
- Where
- India, primarily in top-tier cities.
- Why
- Due to shifting investment strategies and economic conditions.
Cautious Investment
Continued Growth
Market Outlook
Cautious Investment
The sector faces caution from investors due to valuation corrections, policy changes, and global economic uncertainty.
Continued Growth
The market will experience a steady expansion due to the expansion of logistics and e-commerce sectors, especially in Grade A assets.
- Grade A warehouse stock
- 183 million sq. ft. in 2023-24
- CAGR of Grade A warehouse stock (past 5 years)
- 21%
- Warehousing share of PE investments in Indian real estate (2024)
- 45%
- Internal rate of returns for stable warehouse assets
- 9% to 13%
- Expected annual growth rate
- 7-10%