Realtors are now largely invested in Warehousing

Prestige Group is looking to replicate its success in commercial space to warehousing as well. In May, it launched its first logistics centre in Malur, Kolar district, about 50 km from Bengaluru. And Lodha’s 150-acre park in Palava in suburban Mumbai stands to gain from proximity to both the Jawaharlal Nehru Port (JNPT) and the upcoming Navi Mumbai airport. The requirement for warehouses is to be well-located and not just be outside city limits. We have three logistics and industrial park projects at hand and are evaluating more locations. Hiranandani’s industrial park at Talegaon in Pune, spread over 250 acres, and a 100-acre project at Oragadam in Chennai will be functional by the December quarter. The third project is coming up at Nashik on 77 acres. Pune and Oragadam are two areas where industrial growth is very strong, and they are the right places to grow industrial parks.
Rushabh Vora, Co-Founder and Director of real estate services company SILA, said that so far, the domestic warehousing industry had been dominated by small and unorganized players. But occupiers are now moving out to consolidate their activities in large facilities.
The bullishness of these developers is backed by on-ground demand. According to real estate consultancy CBRE, leasing activity in the Indian logistics sector reached an all-time high of 17 million sft in 2017. To cater to this demand, the number of newly-constructed warehousing units should increase by 25 per cent CAGR until 2021. This growth will be seen around the densely populated metros and tier-1 cities and presents an opportunity for both real estate funds as well as developers.