The Silicon Valley of India has witnessed a substantial increase in the demand for industrial and warehousing space.
Story so far: Already a host for numerous e-commerce organizations, Bengaluru has witnessed a surge in demand for industrial and warehousing space. The locational benefits have encouraged the corresponding rise in e-commerce companies setting up in the city, thereby leading to further space requirements.
- The boom of the e-commerce industry post-Covid has propelled the need for modern facilities and logistics areas.
- While third-party logistics (3PL) accounted for 27% of the total warehousing space consumed in the city, 22% was occupied by e-commerce companies as of FY 2021.
Gateway to South India: Bengaluru holds a significant position in the consumer market owing to the influx of population over the last few decades. Multinational corporations have set up manufacturing hubs in all the prominent cities due to the exponential growth of the Indian economy, leading to increasing demand for warehousing space.