Bengaluru’s warehousing sector is poised for a transformative leap, with the total industrial stock projected to reach 53.6 million sq ft by 2025. This remarkable growth, attributed to burgeoning demand for Grade A spaces, is spearheaded by leading institutional investors like Indospace, Ascendas, and LOGOS. Proposed infrastructure projects, including the Bengaluru-Mysore Industrial Corridor (BMIC) and Chennai-Bengaluru Industrial Corridor (CBIC), have become the cornerstone of this expansion. The vacancy rate, anticipated to remain below 8% over the next four years, reflects the enduring strength of the market.
The third quarter of 2024 saw warehouse demand more than double year-on-year, with net absorption touching 1.95 million sq ft. Tumkur Road emerged as the frontrunner among submarkets, followed by Hosur Road and Hoskote. Key industries, including 3PL logistics, engineering, electronics, FMCG, and e-commerce, collectively drove 54% of demand, with Grade A spaces accounting for over half of net absorption. The quarter also marked a 24% increase in new supply, adding 1.92 million sq ft. Tumkur Road dominated new supply additions, reinforcing its pivotal role in Bengaluru’s logistics ecosystem.
Sustainability has become a defining feature of Bengaluru’s industrial landscape. Prime Grade A warehouses, often institutionally funded, incorporate eco-friendly designs, energy efficiency, and advanced compliance standards. These developments align with India’s broader sustainability goals and reduce environmental impact while creating long-term economic value. Additionally, improved infrastructure planning enhances urban logistics, balancing environmental priorities with urban development.
The sector’s momentum shows no signs of slowing. Rents have risen by 3.8% year-on-year, supported by heightened investments and land value appreciation. With institutional players like Welspun and NDR intensifying their presence, Bengaluru’s warehousing sector is set to remain a cornerstone of India’s industrial growth. The symbiosis between sustainability, infrastructure, and institutional backing underscores its potential to redefine urban logistics and economic development.
