70% of APAC Warehousers Planning To Enter India Over Next 2 Years, Says CBRE

Thursday, July 10: India is rapidly solidifying its position as a pivotal logistics hub in the Asia-Pacific (APAC) region. A recent report by global real estate consultancy CBRE indicates that nearly 70% of APAC occupiers are planning to expand their warehousing footprint in India over the next two years. This significant trend highlights India’s increasing appeal as a resilient logistics destination, driven by ongoing supply chain diversification, growing emphasis on ESG (Environmental, Social, and Governance) priorities, and continuous infrastructure development.

Strategic Growth Amid Global Uncertainties

Despite prevailing global economic uncertainties, India continues to attract both domestic and international companies seeking to expand their operational bases. The robust demand across the warehousing segment is largely being fuelled by key sectors, including:

• Third-party logistics (3PL)
• E-commerce
• Engineering and manufacturing (E&M)
• Auto and auto ancillary
• Fast-moving consumer goods (FMCG)

Domestic Confidence Reinforces Expansion

The CBRE report further revealed strong intent among India-based occupiers. Over 80% of these firms-encompassing both Indian companies and global companies operating within the country-are planning to expand their warehousing portfolios within the next two years. Furthermore, a remarkable nearly 90% of them aim to grow their logistics footprint over the next two to five years, underscoring sustained long-term confidence in the Indian market.

Future-Proofing with ESG and Compliance

A key emerging trend is the increasing demand for larger, more modern warehousing facilities that align with ESG standards. Occupiers are prioritising sustainability and compliance, indicating a maturing logistics ecosystem that values scalability, operational efficiency, and environmental responsibility alongside traditional metrics. This shift reflects a strategic move towards future-proofing supply chains in line with global best practices.

Rising Institutional Interest and Regional Penetration

CBRE’s report observed that India’s industrial and logistics (I&L) sector is on a strong growth trajectory. This growth is significantly bolstered by an influx of institutional capital, supportive governmental reforms, and strategic expansion into tier-II and tier-III cities. The continued rise of the 3PL segment and increased outsourcing of logistics functions further reinforce India’s evolving and dynamic logistics landscape.

Long-Term Outlook Remains Positive

Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, commented that India’s logistics sector is undergoing a profound transformational growth phase. He emphasised that the insights from the survey strongly reaffirm India’s position as the most preferred logistics destination within the entire APAC region.

With resilient demand drivers, expanding institutional support, and infrastructure geared for the future, India’s logistics sector is well-positioned for sustained long-term growth and is expected to continue attracting significant investment and expansion over the coming years.

How Will This Help India?

India’s emergence as a major logistics hub will benefit the country in several key ways:

1. Boost to Economic Growth: Increased warehousing and logistics investments will generate jobs, attract FDI, and enhance manufacturing and exports, contributing to GDP growth.
2. Infrastructure Development: Rising demand for modern, ESG-compliant logistics spaces will accelerate the development of roads, ports, and industrial corridors.
3. Tier-II & III City Upliftment: Expansion into smaller cities will drive regional development, improve connectivity, and create economic opportunities beyond metros.
4. Make in India Support: Efficient logistics will reduce costs for manufacturers, strengthening India’s competitiveness as a global production hub.
5. Supply Chain Resilience: Modern warehousing and 3PL growth will help build more agile, compliant, and future-ready supply chains.

This trend strengthens India’s position in global trade, supports industrial expansion, and enhances economic inclusivity.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations