News release
India's warehousing boom: Tier II-III cities drive 100M sq. ft.
India's warehousing boom: Tier II-III cities add 100M sq. ft., now 18.7% of 533.1M sq. ft. total stock. Shift reflects post-GST hub-and-spoke logistics model.
February 13, 2025
- India's total warehousing stock in top 20 cities has reached 533 million sq. ft in 2024.
- Emerging 12 Tier II-III cities now contribute ~100 million sq. ft, approximately 18.7% of the total stock.
- Combined absorption across 20 warehousing markets reached all time high at ~60 million sq. ft in 2024.
- Grade A spaces constitute ~30% of inventory in 12 emerging Tier II-III cities.
- The rise of Tier II-III cities indicates a shift towards hub-and-spoke model, improving last-mile delivery capabilities.
MUMBAI, 13 FEBRUARY 2025: India’s warehousing landscape is expanding, with Tier II-III cities emerging as new powerhouses in the sector. As of 2024, India's total warehousing stock has reached 533.1 million sq. ft, with emerging Tier II-III cities now contributing approximately 100 million sq. ft, or about 18.7% of the total stock. This shift represents a fundamental change in the country's logistics map towards hub-and-spoke model as envisioned during the implementation of Goods and Service Tax (GST).
Note: JLL considers Hosur City, a large Tier II warehouse market, as part of Bengaluru City. Therefore, the numbers of Hosur City are accounted in the numbers of Tier 1 Top 8 Cities.
2024 | Stock (million sq.ft.) | Absorption (million sq. ft) | Average Grade A Rents (INR/ sq. ft/ month) | Average Grade B Rents (INR/ sq. ft/ month) |
---|---|---|---|---|
Top 8 Tier I Cities | 438 | 51 | 24.8 | 20.5 |
Emerging 12 Tier II-III Cities | 95 | 9 | 22.0 | 17.5 |