Demand for Warehousing Space in Surpasses Exceeds Supply, CREDAI-CRE Study Reveals

Warehouse in India - LogisticMart

In a striking revelation, a recent study conducted by the Confederation of Real Estate Developers' Associations of India (CREDAI) in collaboration with the Center for Research and Economic Analysis (CRE) has shed light on the burgeoning warehousing demand in India. According to the study, the demand for warehousing space across the country now surpasses available supply by a significant margin of 1.5 times. This alarming gap has ignited discussions within the logistics and real estate sectors, prompting experts to strategize for the future.

Source:https://economictimes.indiatimes.com/industry/services/property-/-cstruction/pan-india-warehousing-demand-outgrows-supply-by-1-4x-in-january-june-rents-up-10/articleshow/103830089.cms?from=mdr

E-commerce Surge Fuels Demand

The CREDAI-CRE study delved into various factors contributing to the increasing demand for warehousing in India. One of the primary driving forces identified is the rapid growth of e-commerce, particularly in the wake of the COVID-19 pandemic. With more consumers turning to online shopping, businesses have had to expand their storage facilities to meet the surge in orders, thus adding to the demand for warehousing space.

Manufacturing Boom Adds to the Pressure

Additionally, the government's "Make in India" initiative has attracted foreign investments, leading to the growth of manufacturing and industries. These industries require extensive warehousing infrastructure to store raw materials, finished products, and other essential supplies. The resulting demand for storage has put further strain on an already stretched supply of warehousing spaces.

Insights from Mukesh Singh, Founder of LogisticMart

Mukesh Singh, the founder of LogisticMart, expressed his views on this pressing issue. He said, "The current supply-demand imbalance in the warehousing sector poses both challenges and opportunities. As logistics experts, we need to innovate and collaborate to bridge this gap efficiently. Investing in technology-driven solutions, such as optimizing warehouse space utilization and enhancing supply chain management, can help address these challenges effectively."

Regional Disparities and High-demand Cities

The study also highlighted regional variations in warehousing demand, with major metropolitan areas like Mumbai, Delhi-NCR, and Bengaluru experiencing the highest pressure on available warehousing spaces. These cities are economic powerhouses, and their demand for storage facilities stems from a mix of factors, including their strategic locations, robust manufacturing sectors, and thriving e-commerce activities.

Strategies to Bridge the Gap

To tackle this burgeoning demand-supply gap, experts have suggested several strategies. One approach involves the development of multi-story warehousing facilities in congested urban areas, optimizing vertical space utilization. Additionally, the adoption of advanced automation and robotics can enhance the efficiency of warehousing operations, making the existing infrastructure more productive.

Collaborative Efforts and Government Initiatives

Moreover, industry stakeholders and the government must work together to streamline land acquisition and approvals for new warehousing projects. Simplifying regulatory procedures and providing incentives for the development of logistics infrastructure could help alleviate the supply shortage over the long term.

Therefore, the CREDAI-CRE study has brought to light the critical issue of warehousing demand in India surpassing supply by 1.5 times. Addressing this issue will require a concerted effort from various stakeholders, including the government, real estate developers, and logistics companies, to ensure that India's warehousing infrastructure can support its economic growth and emerging industries.

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