Expanding to the emerging tier II & III markets
Insight
12 February 2025
The growing landscape of warehousing sector in India
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India's warehousing industry is undergoing a significant transformation, with tier II and III cities emerging as pivotal growth centers. As of 2024, India's total warehousing stock has reached 533.1 mn sq ft, with emerging tier II-III cities contributing approximately 100 mn sq ft—a fourfold increase since 2017. This shift signifies a fundamental change in the country's logistics landscape, aligning with the hub-and-spoke model envisioned during the implementation of the Goods and Services Tax (GST).
The year 2024 demonstrated robust demand across both established and emerging markets, with a combined absorption of approximately 60 mn sq ft across 20 warehousing markets in India. This growth is primarily driven by the consumption boom, with 60% of online purchases now originating from Tier II and III cities.
Institutional investors and developers are capitalizing on increasing purchasing power, and growing consumer aspirations in these cities by expanding their presence beyond Tier I locations.
This comprehensive report offers an in-depth analysis of India's evolving warehousing sector, covering:
- Market dynamics in India's top 8 tier I cities
- Detailed analysis of 12 emerging tier II-III warehousing markets
- City-specific insights on stock, growth, absorption rates, and rental trends
- Overview of major industrial and logistics projects in each city
- Regional connectivity and infrastructure developments
- Key sectors and occupiers present in each market
- Factors driving the reshaping of India's warehousing landscape
Our analysis offers valuable insights for investors, developers, and occupiers navigating the changing dynamics of India's warehousing sector.
Download our comprehensive whitepaper now to gain in-depth insights into India's evolving warehousing landscape and the exciting opportunities emerging in tier II and III cities.
Download the report for a more in-depth understanding of the factors shaping the business case of investment opportunities in the Indian warehousing sector.