Nearly 70 pc APAC occupiers keen to expand warehousing operations in India: Survey

New Delhi, July 14 (IANS) India has emerged as the most preferred destination for the logistics sector with nearly 70 per cent of Asia-Pacific occupiers planning to expand their warehousing footprint in the country over the next two years, according to a CBRE survey released on Monday.

This growing interest in India reflects the broader shift towards supply chain diversification, as companies aim to reduce dependency on single-market strategies, the survey states.

According to the report's findings, the sector is showing strong confidence in India's market potential, with more than 80 per cent of India-based occupiers (both Indian and global firms with operations in India) planning to expand their warehousing portfolios over the next two years. Despite near-term uncertainties, the country remains a preferred destination for both global and domestic corporates.

According to the survey, nearly 90 per cent of India-based respondents expressed an intention to expand their logistics footprint over the next two to five years, indicating sustained long-term optimism.

The sector is anticipating strong demand in South-East Asia and India across diverse segments, including third-party logistics (3PL), e-commerce, engineering and manufacturing (E&M), auto & auto ancillary, and fast-moving consumer goods (FMCG). Larger deals and modern facilities signal occupiers’ shift towards future-proof, compliant, and ESG-aligned warehousing, painting a promising picture of the sector’s forward momentum.

The industrial and logistics sector is charting strong growth, driven by institutional capital, supportive regulatory reforms, and strategic penetration into tier-II and tier-III cities. This upward trajectory is reinforced by the rise of the 3PL segment, increased outsourcing, and a growing focus on sustainability and compliance, the report states.

Indian occupiers are displaying strong confidence in the country’s logistics sector, with over 80 per cent expecting improved business performance in the next two years.

This optimism is driven by the country’s growing consumption, enhanced 3PL networks, rising modern logistics stock, and the government’s significant infrastructure push. The country’s logistics market, while still evolving, is witnessing rapid improvements in connectivity and cost-efficiency, particularly in non-metro locations.

Anshuman Magazine, CBRE Chairman for the region, said, “India’s logistics sector is undergoing a transformational growth phase, fuelled by robust macroeconomic fundamentals, accelerated infrastructure development, and a maturing occupier ecosystem that is increasingly focused on scalability, efficiency, and sustainability.”

“The insights from our survey reaffirm India’s position as the most preferred logistics destination in the region,” he added.

--IANS

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