India's Industrial And Logistics Sector Set For Robust Growth In 2025: CBRE

New Delhi, Mar 28 (KNN) India's industrial and logistics (I&L) sector is projected to experience robust growth in 2025, driven by increasing warehousing demand primarily from e-commerce companies, according to a comprehensive report by CBRE.

The sector's positive momentum, which gained significant traction in the latter half of 2024, is expected to continue into the upcoming year.

The report highlights multiple catalysts for this anticipated growth, including the influx of investment-grade supply, finalisation of pending transactions, and expanding warehousing requirements from e-commerce players.

The third-party logistics (3PL) sector is expected to remain the dominant occupier group, with continued strong leasing demand from engineering & manufacturing, e-commerce, and fast-moving consumer goods (FMCG) sectors.

Institutional investors are anticipated to play a pivotal role in this expansion, providing critical backing to developers constructing modern, sustainable warehouses.

Major metropolitan areas such as Delhi-NCR, Mumbai, Bengaluru, and Chennai are already experiencing significant warehouse construction activity, ensuring a robust supply pipeline for 2025.

However, the sector is not without challenges. The report acknowledges potential impediments to project completion, including rising land acquisition costs, complex land ownership structures, and ongoing legal proceedings.

To mitigate these obstacles, developers are strategically exploring new locations, particularly in peripheral areas and along key infrastructure corridors.

Investment trends underscore the sector's potential, with a remarkable compound annual growth rate (CAGR) of 20 percent recorded between 2019 and 2024.

Foreign investors have been the primary contributors, accounting for approximately 68 percent of total investment during this period.

Looking ahead to 2025, investor sentiment remains optimistic, albeit with a more measured approach to deal execution and due diligence.

With strong demand from e-commerce, growing investor confidence, and an increasing supply of modern warehousing facilities, India's industrial and logistics sector appears well-positioned to maintain its upward trajectory in the coming year.

(KNN Bureau)