Surge in Demand: Industrial and Warehouse Logistics Parks on the Rise

The supply of Industrial and Warehouse Logistics Park (IWLP) is set to grow by 13-14% year-on-year, reaching 424 million square feet in eight primary markets this fiscal year, as per an ICRA report. The growth is driven by strong demand from third-party logistics and manufacturing sectors, with a notable share from e-commerce.

The supply of Industrial and Warehouse Logistics Park (IWLP) is forecasted to grow 13-14% year-on-year to 424 million square feet in the eight primary markets this fiscal, driven by robust demand, stated an ICRA report on Tuesday.

The report highlighted that absorption is projected to hit 47 million square feet in FY25, up from 37 million square feet in the prior fiscal year.

The logistics sector is seeing consistent demand, particularly from third-party logistics (3PL) and manufacturing sectors, which accounted for roughly 65% of the total leased area as of March 2024, while e-commerce contributed 15%.

(With inputs from agencies.)