Indian Warehousing and Logistics Sector Surges 203% in 2024
NEW DELHI : India’s warehousing and logistics sector secured investments worth $1.96 billion in 2024, contributing 29 per cent to the total institutional investments in the real estate sector last year, according to a report by Vestian released on Thursday.
The sector witnessed a remarkable 203 per cent year-on-year increase in investment inflows, fueled by the rising demand for warehouses, particularly with the rapid expansion of the quick commerce industry. This surge in demand led to a record absorption of 44.9 million square feet (sq ft) in 2024, marking a 19 per cent growth compared to the previous year.
A significant portion of this absorption was recorded in the second half of 2024, reaching 28.3 million sq ft—representing a 70 per cent rise from the first half of the year, the highest ever recorded within a single calendar year.
“India’s position as a key logistics hub is set to strengthen on the back of positive investor sentiments, announcements in the Union Budget 2025-26, and robust domestic demand,” said Shrinivas Rao, FRICS, CEO of Vestian.
The government’s continued emphasis on mega infrastructure projects is anticipated to further boost the sector’s growth. In 2024, third-party logistics (3PL) companies dominated the absorption, accounting for 33 per cent of the total warehousing space taken up across India.
The engineering and manufacturing sector also expanded its presence, increasing its share of total absorption from 18 per cent in 2023 to 24 per cent in 2024, driven by government initiatives such as the production-linked incentive (PLI) scheme and the ‘Make in India’ campaign.
Among cities, Mumbai led with the highest absorption, reaching 18.6 million sq ft in 2024—an 82 per cent jump from the previous year. The growth was largely attributed to improved intercity connectivity via the Navi Mumbai airport and the rise of quick commerce in major tier-1 cities.
Pune recorded the highest growth rate among the top seven cities, with an 85 per cent increase in absorption. Meanwhile, Chennai, Hyderabad, and Kolkata collectively accounted for 15 per cent of the total warehousing absorption in 2024, a decline from 22 per cent in the previous year, the report highlighted.