Research

COVID19 Industrial &
Logistics Sector:
Impact and
Opportunities in India

Decoding the industrial & logistics real estate impact and segment performance in Q1 2020

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May 11, 2020

The Industrial & Logistics segment of India real estate has been on an excellent run for several years. While the present state of affairs with COVID-19 and lockdown in India have created some challenges, it has also made the sector more attractive for investors & manufacturers, with increase in demand & digital acceptance. Q1 2020 witnessed an enhanced emphasis on business continuity plans and supply chain constraints. 

There has been a contraction of approx. 15% in new supply of warehouse space in the first quarter of the year against Q1, 2019. Projected supply of speculative spaces is expected to be delayed by a quarter or two, due to delays in construction. On the demand front, Q1 2020, demonstrated a contraction of approx. 30%. 

However, the current crisis is believed to strengthen further and realign the segment with growing e-commerce & 3PL demand, in-city / urban logistics gaining strength, manufacturing going for Flex-Spaces, etc.  

Catch more details on the impact and opportunity in COVID 19: India Industrial & Logistics - Impact & Opportunities in Pandemic Report

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