"Further, the implementation of government initiatives such as the National Logistics Policy and the national e-commerce policy as well as large-scale infrastructure development are expected to promote investment, thereby further improving the overall stock of warehousing space in India," Magazine added.
He further said the fundamentals of the sector are strengthening, backed by the recovery of domestic demand, improvement of manufacturing sector and structural shift towards omnichannel retailing.
The report stated that Bengaluru, NCR (National Capital Region) and Mumbai accounted for about 60 per cent of the overall space take up during the year.
While third-party logistics (3PL) firms accounted for about half of the leasing activity in 2019, an increase from 36 per cent in 2018, it was followed by e-commerce players with a share of about 18 per cent.
On the supply side, nearly 19 million sqft of space was added in 2019, which is 78 per cent higher compared to 2018. About 70 per cent of this supply was reported in NCR, Mumbai and Chennai.
"Leasing is expected to continue to be driven by 3PL firms and e-commerce players, along with retail corporates. However, 3PL occupiers are expected to turn more cautious about expanding their footprint due to tightening profit margins," the report said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.