Over 110 mn sq. ft. Grade A Warehousing Stock in India, Tier 2 and 3 Cities Rise: Report

Over 110 mn sq. ft. Grade A Warehousing Stock in India, Tier 2 and 3 Cities Rise: Report
Calendar 06 Nov,2020 | Avirahi Group

A report from a US-based real estate services firm says that the top cities in India have become saturated with excessive warehousings which is the reason why the warehousing clusters have started to expand rapidly in tier 2 and tier 3 cities which is making India a global manufacturing hub. Cities like Ahmedabad have been intensely focussing on developing small and multi-location warehouses which are going to rise significantly in future and expand to other major tier 2 and tier 3 cities. In Ahmedabad, Dholera Plot Price is very nominal and perfect for investment purposes as it will be rising considerably in the near future looking at the future development plans. The other cities which are soon going to see immense development in terms of warehousing are Ludhiana, Ambala, Lucknow, Siliguri, Guwahati, Bhubaneshwar, Visakhapatnam, Vijayawada, Coimbatore, Kochi, Nagpur, Indore and Jaipur.

According to the reports, the demand of the warehousing across the country is rising which is surely giving high hopes to the economists and investors. There is data which says that there is more than 110 mn sq. ft. of Grade A stock available in the country which are mostly present in the top 8 cities of India. The warehousing space is largely occupied by third party logistics and e-commerce and amidst high demand, there is a huge opportunity for Grade A warehousing development in the country.

Positive hopes and trend for warehousing

Positivity in terms of demand of warehousing has been seen clearly in the last couple of years in India. The rising trend is surely giving positive vibes to the investors. The market is expected to rise sharply with the trend, ease operation and ensure enhanced business continuity. Since lockdown after COVID-19 has been removed in all parts of the country and e-commerce is back with full pace, demand for warehousing specially multi-level warehouses within city limits is only going to rise from here. Automation is going to become a major area of focus since more and more emphasis will be given on following social distancing norms and contain costs.

The current Indian Government is doing its best to create a favourable infrastructure for the growth of warehouses in the country. Time taken to construct a warehouse has been reduced to just 3.5 months which was 6 months earlier. In this scenario, if you have a Plot in Dholera SIR, it will give you multiple returns in future and also will be the best place to live amidst developing Dholera.

What Other Reports Say

There are many other reports that support the development projects of warehouses in other cities except the top 8. 75,000 acres of land has been assigned for the industrial development amongst which 22,734 acres have been alloted to Dholera SIR, 19,333 acres to Pharma City and Zaheerabad NIMZ at Hyderabad has been alloted 12,635 acres of land. Corporate taxes have been reduced significantly in these areas, and policies like Make In India and National Manufacturing Policy as being implemented to make the most of these opportunities

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