India’s property market appears to be undergoing a quiet but decisive transformation, as warehouses overtake offices to become one of the most sought-after real estate bets.
Recent reporting by the The Economic Times suggests investor sentiment is shifting sharply. Capital that once flowed into Grade-A office parks and shopping malls is increasingly being redirected towards logistics parks and industrial sheds. Institutional investors, sovereign wealth funds and private equity firms are recalibrating portfolios in favour of warehousing assets, attracted by stronger leasing momentum, resilient occupier demand and relatively stable yields.
Analysts say this is more than a cyclical adjustment. Instead, it reflects structural changes that have been building for years — accelerated by the growth of e-commerce, supply-chain diversification and policy focus on logistics infrastructure.
Platform-based investments have emerged as the dominant strategy. Global investors such as Blackstone, GIC, Canada Pension Plan Investment Board and Abu Dhabi Investment Authority are backing scaled logistics platforms in India. Domestic capital providers, including HDFC Capital and Kotak Investment Advisors, are also increasing exposure to the segment.
Warehousing and logistics real estate, once considered a peripheral asset class, are now outperforming traditional office and retail segments in both deal flow and investor interest. Developers who previously concentrated on commercial office towers are actively expanding into large-format logistics parks.
A recent study by Grant Thornton Bharat indicates that institutional appetite has shifted from exploratory allocations to conviction-led commitments. Shabala Shinde, Partner and Real Estate Industry Leader at the firm, said India’s real estate landscape is being “structurally redefined”, with warehousing evolving into strategic economic infrastructure.
As logistics assets sit at the intersection of real estate, capital markets and national supply-chain planning, many investors now see them as offering long-term stability, scalable growth and institutional-grade income — hallmarks of a maturing asset class.
