New Delhi, March 20 (IANS) The Indian warehousing and logistics sector received investments worth $1.96 billion in 2024, accounting for 29 per cent of the total institutional investment garnered in the real estate sector last year, a report showed on Thursday.
According to Vestian’s report, investment inflows surged to 203 per cent year-on-year in the sector, driven by the growing demand for warehouses amid the rapid expansion of the quick commerce sector.
As a result, this surge in demand resulted in a record absorption of 44.9 million square feet (sq ft) in 2024, marking a 19 per cent increase over the previous year.
Notably, the second half of 2024 alone witnessed 28.3 million sq ft of absorption, a 70 per cent jump compared to H1 2024 — the highest ever recorded in a single calendar year.
“India’s position as a key logistics hub is set to strengthen on the back of positive investor sentiments, announcements in the Union Budget 2025-26, and robust domestic demand,” said Shrinivas Rao, FRICS, CEO, Vestian.
The government’s continued focus on mega infrastructure projects is expected to further propel growth in the sector.
Majority of the absorption in 2024 was concentrated in third-party logistics (3PL) companies, accounting for 33 per cent of the pan-India absorption.
The share of engineering and manufacturing sector increased from 18 per cent in 2023 to 24 per cent in 2024, propelled by various government initiatives such as production-linked incentive (PLI) scheme and ‘Make in India’ campaign.
Mumbai reported the highest absorption of 18.6 million sq ft in 2024 as it grew by 82 per cent compared to the previous year.
The significant rise in absorption could be attributed to improved intercity connectivity through Navi Mumbai airport and the rise of quick commerce in major tier-1 cities.
Pune’s absorption increased by 85 per cent, the highest rise amongst the top seven cities. Chennai, Hyderabad, and Kolkata accounted for 15 per cent of the pan-India absorption during 2024, indicating a decline from 22 per cent a year ago, the report noted.
—IANS
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