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Not all real estate is created equal and those who doubted that have been successfully course-corrected by the pandemic.
While office, retail and hospitality real estate assets continue to burn their transmissions trying to climb out of the 2020-21 ditch, warehouses are on a roll.
Yeah? Got Some Numbers?
In India, leasing of industrial and warehousing real estate across the top-8 cities increased by 35% in 2021 (over 2020) to 35.1 million sq. feet.
What's Triggering This?
Increasing online purchases of fresh produce and grocery, day to day stuff, and pharmaceuticals, fuelled by the COVID-19 pandemic, is the biggest growth driver for warehousing today.
Digging a bit deeper:
🔼 A big increase in ecommerce, pharmaceuticals, online buying of groceries, and the rapid rise of the dark store.
🔼 Wholesalers and 3PLs have been relying on inventory-at-hand to effectively address supply chain disruptions.
🔼 Plus, the need for modern urban distribution centres to ensure hassle-free last-mile deliveries, trade embargos, and geopolitical issues have been the driving factors for this global demand growth for warehousing and cold storages.