Warehouses In Delhi NCR, Mumbai Set To Get Bigger: CBRE
New Delhi: The average size of warehouses is expected to exceed 1 million sq ft in Delhi NCR and Mumbai in the near future while the average size of the same in Pune, Chennai and Hyderabad is likely to remain in the range of 0.3-0.5 million sq ft.
There are unprecedented structural changes happening in the country’s logistics sector. These are in the form of automation which is causing blurring of lines with the retail sector. There are also transformation of supply chains and growing investments in the logistics sector, according to a recent report by property consultant CBRE.
India is expected to emerge as one of the attractive investment places for the logistics industry in the next 6-12 months. The recent reforms by the government in term of favourable reforms and infrastructure initiatives are expected to give rise to a favourable business environment in the country.
Technology is permeating into the sector fast and demand for decent space is increasing. Manufacturing companies across the segments are demanding large and modern warehouses. The technology enhancements, particularly in the automation sphere, will lead to better specifications and operations of the logistics assets. This will push older properties with outdated technology out of favour.