According to a recently released report by real estate consultancy firm JLL India, for the first time in the last four years, the demand for A-grade warehousing in the country has exceeded the actual supply on the ground. The agency has noticed this change in the first quarter of 2019.
While emphasizing that the regulatory changes like the implementation of GST and infrastructure sector status is changing the fortune of warehousing industry, the report by JLL India maintained that the annual demand of around 32 million sq ft has outstripped the supply of 31 million sq ft during January-March, 2019 period. The report also underlind that the share of Grade-A units in total warehousing demand has shot up to 56 percent. 3PL and logistics, e-commerce, white goods, auto, etc. have been cited as the leading drivers of the surge in the fresh demand. Ramesh Nair, CEO & country head, JLL India commented, “Favourable investment regulations have made the deployment of development funds a lot easier than it used to be in the past. Moreover, the infrastructure status as expected has added strength to the development pace.”