Warehousing to attract up to Rs 15,000 crore investment every year
The warehousing sector, which is likely to grow at 9-11 per cent every year, private equity players are keen on tapping the opportunity and expect investments up to Rs 15,000 crore per annum. According to HDFC Realty, warehousing industry has recently seen a sharp growth in demand primarily driven by new age e-commerce industry and growth in organised retail which are leveraging technology in their supply chain to optimise costs.
According to Milestone Capital, investors are very positive towards this sector with strong government support and reforms followed by RERA, GST, REITs, among others. As per the findings from PropTiger, the supply of warehousing space is in the range of 900 million sq ft but much of it is in unorganised sector. Demand is expected to be 1,500 million sq ft by 2020 with annual requirement of 100-125 million sq ft.