• 3-4-5 OCTOBER 2020
  • Pragati Maidan, New Delhi

Tier II, III cities to be the future destinations for warehousing industry

With the world bracing itself to face one of the biggest disruptions, many changes are expected to come into play across sectors. The world is gearing up to open and overcome the adversities imposed by the ongoing pandemic crisis.

According to industry experts, due to nationwide lockdown and restricted movement, the importance of in-city warehousing has slightly come down. Now the focus has shifted to tier II and III locations emerging as preferred investment destinations.

The warehousing sector, which was mainly concentrated in tier I cities - especially the major eight metros, had started shifting to tier II locations after certain policy initiatives, according to sources. Due to various reasons of urbanisation, warehousing has been more focused in the top eight metros. Later, due to certain policy initiatives, some of the tier 2 cities also emerged as preferred locations.

Though the supply of new warehousing space in 2020 could be merely 12 million sq ft as against the previous estimate of 45 million sq ft due to COVID-19 crisis, in the long-term, the demand for warehousing space will grow significantly and there may be capacity addition in almost 30-35 new tier II and III cities.

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