Warehousing absorption to grow 83% on e-commerce, manufacturing expansion

Third party and e-commerce accounted for 60% of total absorption in 2020, followed by manufacturing at 24%. That year, investments of over $1-bn were made in industrial & warehousing market

Industrial and warehousing space absorption is expected to grow by 83 per cent to 47.7 million sq ft in 2021, driven by robust expansion in e-commerce and manufacturing, and rising demand in tier-I and tier-II cities, according to global property consultancy firm Savills India.

The third party and e-commerce sectors continued to drive warehousing demand, accounting for 60 per cent of the total absorption in 2020, followed by manufacturing sector at 24 percent. The growing number of firms in these sectors and the huge Indian consumption market have whipped up the investment prospects of India’s warehouse sector. In 2020, the