Logistics and Warehousing Boom: Unlocking India's Next Real Estate Goldmine

In an exclusive interaction with Homes India Magazine, Dipen Karania, Director at Address Advisors, shares his insights on warehousing and logistics in India today, and how Multimodal Logistics (MML) is anticipated to redefine integrated logistics in the fast-growing road, rail, port, and air transport infrastructure. That is the only asset class in India which is currently delivering near double-digit yields. Dipen Karania, being a developer and a consultant himself, understands the industry from all perspectives. He comes from a business family from which he exited at a highly profitable juncture. Along with setting up the Industrial & Warehousing Leasing team, he works closely with E-commerce & logistics companies and is spearheading the expansion of Address Advisors PAN India.

What are the top three reasons for the warehousing and logistics boom in India today?

Economic trends witnessed in Real Estate, regardless of asset class, will more often than not stem from events or trajectory in the larger economy and are then intertwined with multiple other factors. Similar is the case with the euphoria we are witnessing in the warehousing and logistics assets. The past decade of fiscal efforts is showing results now, and India, as we all see, is poised to leapfrog in the list of the largest economies of the world. This results in increased disposable income, which fuels consumption across categories, thereby resulting in demand for storage/warehousing. India currently has a per capita warehousing stock of approximately 2.70 sq. ft., significantly lower compared to developed economies like the US ( 54.20 sq. ft.), Japan (46.30 sq. ft.), and China (8 sq. ft.).  The rise of e-commerce, followed by quick-commerce, is another catalyst in increasing the demand for warehousing, with companies like Amazon, Flipkart, Zepto, Blinkit, etc, adding lakhs of sq. ft. in storage/warehousing area to facilitate quicker deliveries to end users. Lastly, the growth in road networks has led to increased confidence in the development of specialized warehousing clusters with a well-equipped ecosystem to feed both B2B and B2C needs without fuss.  

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How are automation and robotics being adopted across modern warehouses in India?

Automation and Robotics, although in their nascent stages, have witnessed fascinating applications in warehousing and logistics. Videos of automated conveyor systems, touchless barcode reading and segregation, and drone-assisted racking leave us amazed. Necessity is the mother of all inventions, these insanely large volumes experienced by E-commerce companies during festive seasons are a classic example. With volumes beyond human comprehension and handling capacity, it was inevitable that machines would soon take over such tasks. Fast-evolving AI has further enhanced these applications, with more and more jobs being taken over by machines with fewer error rates.

What has been the effect of multimodal logistics infrastructure on operational efficiencies?

MML is a much-anticipated forward integration in logistics with the fast-growing road, rail, port and air transport infrastructure. Imagine large machines, furnaces, etc, which were earlier fabricated at end-use sites now being fabricated in factories miles away and being transported with ease using the well-knit network of road-rail or road-port/sea transport. The long trucks carrying wings of a windmill are being transported from one end of the country to another using the MML infrastructure that now allows most products to be developed in factories.

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How are trends in rental yields and capital appreciation in logistics-led real estate?

Industrial and Logistics is the only asset class in India that is currently delivering near double-digit yields. Capital appreciation also holds the highest promise as most of these assets are built on lands where price saturation is long away. Real Estate consumed in the development of warehousing and industrial assets easily outperforms the CPI inflation and will continue to do so. The modular nature of the construction serves as a cherry on the cake, with more than 50 percent of the construction cost easily salvageable at the end of use.

How are the future corridors such as the Delhi-Mumbai Industrial Corridor (DMIC) going to repay in the next 5 years?

Over the next five years, DMIC is expected to begin repaying investments primarily through increased industrial output, improved logistics, and land monetization. Early zones like Dholera and AURIC have attracted over INR 4,000 crore in investments and are generating interest from manufacturing and tech firms. The Dedicated Freight Corridor will cut Delhi–Mumbai transit time by 40%, reducing logistics costs and boosting efficiency. Land lease revenue and user charges will offer moderate direct returns initially. However, broader economic paybacks like job creation, higher tax revenues, and FDI inflows will grow steadily. Returns will depend heavily on timely execution, with significant gains more likely in the latter half of the decade.