Quick Commerce To Fuel Growth In Warehousing Demand: CBRE

According to the 'CBRE 2025 India Logistics Occupier Survey', over 80 per cent of global and Indian occupiers who have businesses in India are planning to expand their warehousing portfolio

Increased warehousing demand from 3PL, e-commerce, and retail sectors is anticipated to sustain the current growth trend

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The success of quick commerce pilot programs by major e-commerce companies will significantly boost leasing activity, particularly for in-city warehouses and last-mile delivery hubs, noted CBRE in its latest report.

According to the 'CBRE 2025 India Logistics Occupier Survey', over 80 per cent of global and Indian occupiers who have businesses in India are planning to expand their warehousing portfolio over the next two years. The companies are also going for a strategic shift to shorter delivery times in their supply chain management.

The India Industrial and Logistics Figures H1 2025 report highlighted that despite global and domestic macro-economic uncertainty, the overall occupier appetite for quality warehousing space is expected to remain strong in 2025, with space take-up seen surpassing the 2024 levels.

Increased warehousing demand from 3PL, e-commerce, and retail sectors is anticipated to sustain the current growth trend.

CBRE said that developers are concentrating on Grade A warehousing, offering facilities with enhanced capabilities to meet the evolving market demands

These include higher floor load capacities, better safety standards, automation readiness, and ESG compliance, leading to greater efficiency and sustainability.

With underlying fundamentals and market sentiment remaining positive, the 2025 supply pipeline is poised to remain strong, primarily driven by developers backed by institutional investors, the report stated.

The firm projected that Bengaluru, Chennai, Delhi-NCR, and Mumbai will be the primary contributors to the upcoming supply.

However, project completions could face delays due to challenges such as limited land availability and rising acquisition costs, among other complexities.

"As a result, developers are likely to pursue land in peripheral areas, along infrastructure corridors, and through brownfield projects," the report added.

As per the report an increase in investment-grade supply, and rising land and input costs, warehousing rents are projected to continue their upward trajectory in key micro-markets across most cities, fuelled by flight-to-quality sentiment.

While rental growth may remain fragmented and influenced by the specific supply in each location, investment-grade developers are actively striving to differentiate their properties from sub-investment-grade developments.

"Institutional developers are incorporating advanced features, such as docking stations, automation, and green certifications, to maintain competitive rental rates," the report highlighted.

The report added that specifically, cities such as Hyderabad, Pune, Bengaluru, Chennai, and Ahmedabad are expected to experience a year-over-year rent growth of approximately 2-11 per cent by the end of 2025.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)