Knight Frank Expects Strong Second-Half Growth in India Warehousing Market
Knight Frank projects robust demand for Indian warehousing in the second half of the year, driven by manufacturing and third-party logistics growth.
India's warehousing sector is positioned for a strong second half of the year, according to a new outlook from global property adviser Knight Frank. The firm points to a combination of expanding manufacturing activity and rapid growth in third-party logistics (3PL) as the primary engines of demand for storage and distribution space across the country.
Manufacturing and 3PL Lead Demand
Knight Frank's analysis indicates that manufacturers are increasing their warehousing footprint to support production ramp-ups and to manage inventory more efficiently. At the same time, the rise of 3PL operators, which handle logistics functions on behalf of other companies, is creating fresh leasing activity in key logistics corridors.
- Manufacturing sector expansion is driving occupancy in industrial hubs.
- 3PL providers are scaling operations to meet rising outsourced logistics needs.
- Modern, grade-A warehousing facilities are seeing the strongest uptake.
Outlook for the Second Half
According to Knight Frank, the second half of the year is expected to outperform the first half across most major Indian markets. The advisory firm highlights that supply chain diversification, government infrastructure spending, and growing e-commerce volumes are reinforcing the upward trajectory for warehouse leasing. Developers and occupiers are also paying closer attention to sustainability and automation features as the market matures.
Knight Frank notes that investors continue to view Indian warehousing as a long-term growth opportunity, with institutional capital flowing into both greenfield developments and the acquisition of operational assets. As demand outpaces the delivery of new supply in select micro-markets, rental values are expected to remain firm, particularly in well-connected corridors near consumption and manufacturing centres.
Related developments in the logistics sector include moves by major global players to expand their presence in India, while new platform launches are reshaping how supply chain leaders build resilient operations. For more on these shifts, see how a recently published book by Vikrant Neb addresses execution under pressure for warehouse and 3PL leaders, and follow broader M&A activity such as CMA CGM's acquisition of the FedEx logistics arm.