The scope and growth for investors in this area is high compared to traditional real estate.
Granting of an infrastructure status to the logistics sector has strengthened confidence in the sector.
The transformation of this industry over the past few years has managed to attract local and foreign investments. Hence, we see joint ventures being formed.
To bring quality grade-A industrial, light manufacturing and warehousing parks, Embassy Industrial Parks is starting with eight key cities - Delhi, Mumbai, Bengaluru, Pune, Ahmedabad, Hyderabad, Kolkata and Chennai, and will then move to other metros.
Big institutional and logistics developers are betting big on the growing demand for warehousing in India either by forming joint ventures with local partners or by investing in the sector.
Large investments will not only improve the warehouse construction quality across the sector but also help in improving the yield out of such investments.
With the development of e-commerce, however, the traditional warehousing model has begun to fall short.