Credit: EnvatoGRI Warehousing & Logistics India
Key insights from the industry leaders redefining this thriving sector
February 14, 2025Real Estate
Written by Isabella Toledo
The Indian warehousing and logistics sector is at a turning point. Faced with rising land costs, stagnating rental yields, and increasing tenant demands, developers and investors are searching for strategies to maintain profitability while scaling operations.
As the industry adapts to these pressures, collaboration among key players is emerging as a powerful lever for growth. From joint ventures in multi-modal logistics parks to shared infrastructure initiatives, cooperative efforts are helping stakeholders manage rising costs, streamline approvals, and create a more competitive market landscape.
This shift towards collaboration aligns with a broader transformation in the sector. Developers are increasingly focusing on Grade A facilities, sustainability-driven investments, and integrated logistics hubs to enhance operational efficiency and long-term value.
However, scaling these efforts is not without its hurdles. Persistent land acquisition challenges, fragmented ownership structures, and complex regulatory frameworks remain significant barriers. Unlocking the full potential of the industry will require targeted policy reforms and innovative financing mechanisms to attract new investment and drive sustainable expansion.
Despite these structural challenges, investor confidence in India’s warehousing market remains strong. Private equity inflows and structured financing options are enabling large-scale projects, while new leasing models and evolving market demands are reshaping the landscape.
The rapid rise of quick commerce, in particular, is accelerating the need for urban fulfilment centres, port-centric logistics, and technology-driven warehouse solutions. To remain competitive, industry leaders must embrace new formats and rethink traditional warehousing strategies in response to shifting consumer and business expectations.
This report draws on insights from GRI Warehousing & Logistics, the GRI Club India forum that brought together senior decision-makers for expert-led discussions on critical topics, including the sector’s investment potential, the rising demand for quick commerce, and the challenges of evolving regulatory frameworks.
Read the key takeaways from the session here.
The Indian warehousing and logistics sector is at a turning point. Faced with rising land costs, stagnating rental yields, and increasing tenant demands, developers and investors are searching for strategies to maintain profitability while scaling operations.
As the industry adapts to these pressures, collaboration among key players is emerging as a powerful lever for growth. From joint ventures in multi-modal logistics parks to shared infrastructure initiatives, cooperative efforts are helping stakeholders manage rising costs, streamline approvals, and create a more competitive market landscape.
This shift towards collaboration aligns with a broader transformation in the sector. Developers are increasingly focusing on Grade A facilities, sustainability-driven investments, and integrated logistics hubs to enhance operational efficiency and long-term value.
However, scaling these efforts is not without its hurdles. Persistent land acquisition challenges, fragmented ownership structures, and complex regulatory frameworks remain significant barriers. Unlocking the full potential of the industry will require targeted policy reforms and innovative financing mechanisms to attract new investment and drive sustainable expansion.
Despite these structural challenges, investor confidence in India’s warehousing market remains strong. Private equity inflows and structured financing options are enabling large-scale projects, while new leasing models and evolving market demands are reshaping the landscape.
The rapid rise of quick commerce, in particular, is accelerating the need for urban fulfilment centres, port-centric logistics, and technology-driven warehouse solutions. To remain competitive, industry leaders must embrace new formats and rethink traditional warehousing strategies in response to shifting consumer and business expectations.
This report draws on insights from GRI Warehousing & Logistics, the GRI Club India forum that brought together senior decision-makers for expert-led discussions on critical topics, including the sector’s investment potential, the rising demand for quick commerce, and the challenges of evolving regulatory frameworks.
Read the key takeaways from the session here.
