India’s Warehousing Boom: How Logistics Real Estate Is Overtaking Offices as the Top Investment Choice
India’s real estate sector is undergoing a major structural shift as warehousing and logistics assets emerge as the most preferred investment segment. Institutional investors, sovereign funds, and private equity firms are increasingly allocating capital to logistics parks instead of traditional office and retail properties. This transition reflects changing economic dynamics, where supply chain infrastructure has become central to growth, offering stable returns, long-term leases, and strong occupier demand.
The rise of platform-based investments has accelerated this trend, with global investors like Blackstone, GIC, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority backing large-scale logistics portfolios. Domestic players such as HDFC Capital and Kotak Investment Advisors are also expanding their presence. These investors see warehousing as strategic infrastructure rather than just another real estate asset, driven by India’s expanding manufacturing and consumption ecosystem.
Read More
Leasing activity has reached record levels, driven by demand from third-party logistics companies, engineering firms, and e- commerce players. Major transactions by companies such as Amazon and Honda highlight growing occupier confidence. This surge in leasing indicates real demand rather than speculative construction, reinforcing the sector’s long-term investment potential. Developers are responding by increasing supply and building modern Grade-A logistics facilities across major industrial corridors.
Structural factors such as the growth of e- commerce, digital transformation, and government infrastructure initiatives have accelerated warehousing demand. Companies are decentralising storage to enable faster deliveries and improve supply chain resilience. The shift toward organised logistics, supported by GST reforms and improved highway connectivity, has further strengthened demand for large, compliant logistics parks.
Looking ahead, warehousing is expected to remain one of India’s most promising real estate segments. While challenges like land acquisition and rising competition exist, strong economic fundamentals and rising consumption will continue to drive growth. As India expands its manufacturing base and digital economy, logistics real estate is set to play a critical role, offering investors scalable opportunities and consistent returns.
