Indian Economy News

Top eight markets warehousing supply to grow 13-14% on year in FY25

  • IBEF
  • July 10, 2024

The industrial and warehouse logistics park (IWLP) supply across India’s eight primary markets is projected to grow by 13-14% YoY in 2024-25, reaching approximately 424 million sq. ft. According to rating agency ICRA, absorption is expected to rise to 47 million sq. ft during the financial year, up from 37 million sq. ft a year earlier, driven by robust consumption-led demand. The vacancy rate in these markets, standing at 10% in 2023-24, is anticipated to remain at a similar level in 2024-25.

The logistics and warehousing sector have gained 'infrastructure' status, fuelling increased demand spurred by the rapid expansion of sectors like e-commerce, government initiatives to bolster manufacturing, and the burgeoning consumption market. Grade A warehouse stock in the eight primary markets grew at a healthy compound annual growth rate (CAGR) of 21% over the past five years, reaching 183 million sq. ft in FY24, and is projected to expand by 19-20% YoY in FY25. The share of Grade A stock in the total warehousing supply is expected to increase from 49% in the previous fiscal year-end to 51% by March 2025.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.