The sector has attracted an investment of Rs 8,257 crore since the beginning of this year.
The quarterly average investment in the logistics and industrial sectors was almost 1.3 times that of Rs 2,755 crore in 2021.
“The flow of investments is recovering, driven by foreign investors A strong indicator that, despite global headwinds, the Indian economy and real estate sector are pacing to deal with impending macroeconomic risks,” said Anshul Jain, Managing Director, India and South East Asia, Cushman & Wakefield. “The logistics and industrial sector is in good shape, as investments for the year have already reached 75% of 2021. Given this, it is likely that logistics and industrial investments may match or even exceed the 2021 annual numbers May be.”
The logistics and industrial segment accounted for 25% of the quarter’s fund flows, led by two big deals – Actis’ Rs 2,200 crore investment in Mahindra Lifescape for warehousing in Chennai and Jaipur, and GIC and ESR Group partnered to set up a $600 million joint venture.
“The demand for 3PLs has increased with many fans returning to the market. Retail and industrial transactions have been promising, and we are looking to complete several deals by the end of the year,” said Abhijit Malkani, CEO of industrial and logistics property developer ESR India.
Separately, domestic developers and funds such as welspun ONE and AA Holdings are increasing their investments in the industrial and logistics sectors.
“We believe that the Indian logistics and warehousing sector will continue to offer opportunities. With the progress of ‘Make in India’ a strategy from China and most global manufacturers, we are looking forward to making our country a stronger partner in our country,” said Abhijeet Verma, Managing Director, AA Holdings. We see a huge demand for Grade-A industrial and logistics parks in India.
With the increase in the share of organized retail and e-commerce, the industrial and logistics asset class is expected to outperform other real estate and infrastructure asset classes in the medium term. The segment is expected to gain further strength and attract more investments in the coming years.