The preference for the investment is indicated by the fact that the warehousing segment has garnered the second highest share in equity investments among real estate assets after commercial offices. And this preference for the asset class surpassing residential, retail or any other segment is expected to continue this year as well, experts said.
Given the growth in warehousing occupancy activity, the demand for these assets is high and non-availability of operational assets for investments poses a key challenge. This is likely to push funds to flow towards new developments either through an asset-specific alliance or setting up of platforms for a portfolio including a number of projects in key markets.
Office real estate witnessed the highest equity investments around $2.5 billion, followed by warehousing at $1.9 billion, residential with $654 million and retail at $303 million in 2022. In the first quarter of 2023, investments of $216 million have already been received in the warehousing sector, highest among all other sectors, showed data from Knight Frank India.
“The growth of the warehousing market can be attributed to the manufacturing sector, which serves as a central focus area for the government. Given India’s aspirations to become a prominent global manufacturing hub, the warehouse sector has gained immense importance as a vital component of the country’s infrastructure,” said Shishir Baijal, CMD, Knight Frank India.
