Contrary to the residential real estate segment, the warehousing and logistics sector in the country is witnessing an unprecedented growth for the past three years. Unlike rest of the segment of real estate, this sector is witnessing timely completion and delivery of projects.
Driven by a huge demand by corporates for quality space that is replete with state-of-the-art modern technologies, the future of the segment looks bright. Government is leaving no stone unturned when it comes to give a push to the segment, it will be now wonder that India soon emerge as the most preferred logistics and warehouse destination across the globe very soon.
As per reports and some industry experts, the logistics segment is already on a high in the country and is projected to beat conventional sectors, including housing. The segment was granted the status of infrastructure sector in the year 2017 following which there has been no looking back in its growth. The implementation of GST in 2017 only added further momentum to the growth.
In fact, the projected stock of warehousing space in the country is expected to cross 300 million square feet over the next four years in eight major cities alone, Financial Express reported. Warehousing and logistic sectors are expected to see more activity in Tier II cities including Coimbatore, Ludhiana, Lucknow, Jaipur and Guwahati. NCR towns of Noida, Ghaziabad and Gurugram are also expected to be key drivers of demand in the logistics leasing market.
As key players in the e-commerce, wholesale and retail segments make a gradual entry to various Tier II cities of the country, need for warehousing is expected to increase manifold.
Not only demand wise, warehousing and logistic are expected to witness paradigm shift in the way they operate and run. Older and substandard logistics and warehousing facilities are also going to be pushed out of the market as custom-made facilities suited to the specific needs of clients.
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