According to a recent Knight Frank report titled India Warehousing Market Report 2021, annual storage transactions in primary markets will increase at a compound annual growth rate of 19% to 76.2 million square feet in FY26, from 31.7 million square feet. foot in FY21.

A recent report from Savills India also shows that industrial and warehouse rental in 8 major cities increased by 35% in 2021, with fresh supply increasing by 64%. With such rapid expansion, the sector has established itself as one of the most resilient asset classes that continues to bring significant capital.

The pandemic has certainly played an important catalytic role in promoting the logistics industry. With a drastic shift to digitization and contactless operations, customers who traditionally worked offline went online. This resulted in a major explosion of D2C brands focused on getting the very best out of their products directly to the customer.

This emphasized the importance of facilitating the entire home delivery supply chain. Also, the increased need for oxygen cylinders, essential supplies, vaccines, food, etc. made rapid and timely distribution a focus.

There was a big boom in the e-commerce sector. It accelerated the speed of the industry to meet consumer needs for the increased demand for home shopping and shed light on the importance of last-mile delivery.

A-warehouses appeared as the total solution and their demand increased sharply. The Savills report also confirms this by showing that in 2021, storage demand was driven by e-commerce companies and third-party logistics players for 62% of the total absorption, followed by the manufacturing sector at 14%. A warehouses are gigantic spaces that enable storage, promote efficient operation of any company's supply chain, and are made with modern amenities, state-of-the-art infrastructure & technology to deliver competencies.

Moreover, with limited space within the existing parks, companies are often forced to settle for alternative areas, far from the city.