What are the investment opportunities in warehousing real estate?

India’s warehousing real estate offers lucrative investment opportunities, driven by rising rental yields, e-commerce demand, and favorable policy reforms like the National Logistics Policy. Several avenues attract both institutional and private investors:

• Grade A Warehouses: These typically command long-term leases with multinational tenants, offering stable returns. Strategic locations near highways, ports, or consumption centers are key focus areas.
• Logistics & Industrial Parks: Large integrated developments that combine warehousing, transportation, and sometimes cold storage. These parks benefit from multi-modal connectivity and tax incentives.
• Tier-2 & Tier-3 City Hubs: Emerging markets in cities like Lucknow, Coimbatore, and Indore offer lower land costs and potential for appreciation as consumer demand grows.
• Built-to-Suit Projects: Custom-built facilities for companies seeking specialized features ensure pre-leased revenue streams.
• Cold Storage: Rising demand for temperature-controlled logistics in sectors like pharmaceuticals and grocery e-commerce fosters niche opportunities.

With global investors increasingly eyeing India’s fast-growing logistics sector, strategic investments in location, technology, and sustainability can yield robust, long-term dividends.