What are the challenges facing warehousing real estate in India?

Despite remarkable progress, India’s warehousing real estate sector still faces several challenges:

• Infrastructure Gaps: Inconsistent last-mile connectivity in tier-2 cities increases transportation costs and delays.
• Land Acquisition & Zoning: Acquiring large parcels near consumption hubs is expensive and complicated due to zoning laws and bureaucratic hurdles.
• Regulatory Uncertainties: While reforms like GST have helped, state-specific regulations and local approvals can slow down projects.
• Talent & Skill Shortages: The demand for trained operators and technicians is rising, but the labor market struggles to keep pace, increasing wages for specialized roles.
• Fragmented Market: Many Grade B and C facilities persist, limiting consistent quality across regions. Institutional investors often prefer Grade A developments.
• Sustainability Costs: Implementing sustainable practices like solar installations or LEED certifications adds upfront costs, despite long-term benefits.

By streamlining policies, investing in skill development, and fostering private-sector partnerships, India can overcome these challenges and sustain warehousing growth momentum.