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Warehouse growth in Bangalore- Is it worth the investment?

Posted by Balaji on June 18, 2020
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Have you ever thought about how important role warehouse play in getting your ordered item delivered right at your doorstep? Well, if you haven’t before, you better start now. Because if you are interested in real estate investment, you are going to come across warehouses and server farms everywhere.

Warehouses are an essential part of the supply chain to continue the process of distribution of goods from manufacturing factories to shops. They are strategically placed in the areas of demand to ensure the best quality of ordered products and to store the items for safe and fast delivery.

Surge In Demand Of Warehouse Investment In Bangalore

When it comes to real estate investment, I’m sure no one would take a lot of time to decide whether to buy a small beautiful shop at the street corner or not. However, while thinking of buying a big old warehouse you’d make a sour face for sure. Though this can prove to be your ultimate downfall this year.

Because of ever-dwindling and shifting economy, warehouse investment has grown for the better. With the surge in the e-commerce industry, the demand for warehouses is continuously increasing. This is evident by the fact that e-commerce companies, such as Amazon and Flipkart have leased about 40% of the industrial properties, which has formed an air of competition for the acquisition of server farms and warehouses by all the large business companies and real estate fanatics.

According to Economic Times, warehouses might be able to pull in $10 billion in the next few years. The latest infrastructure reforms and Goods & Services Act are also maintaining a steady supply with the additional acquisition of 200 million square foot space of warehousing all over India. Moreover, this area is supposed to get doubled by 2022 to more than 300 million square feet.

These days e-commerce stores and tech companies are rising to the occasion to spend substantially in acquiring these spaces for their various needs. The cities coming out as top players in keeping up with demands and absorption are Delhi, Mumbai, Pune, Chennai, and Bangalore. Bangalore’s warehouse industry has witnessed an increase of transaction volume from 1.1 million square feet to 2.1 million square feet in only one year. Although the Nelamangala Dabaspet belt in Bangalore has the least free space, this industrial section is still expected to continue to skyrocket in Bangalore.

What to consider before warehouse investment

If you are sure about investing in a warehouse, the next best thing is to remember all the dos and don’ts of it.

  • Estimate the value of space with respect to the size, location, and condition of the warehouse.
  • Compare different warehouses in the same area to judge the value of your purchase better.
  • Invest in an ideal location that is most suitable for your business. The site should be near ports and distribution centers to help the supply chain run seamlessly.

Whether you are already looking to buy a warehouse or still contemplating the decision, I’m quite sure wherever you want you can find lots of smart choices for sure. So happy investing!

 

 

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