Mumbai, July 16 The green warehousing sector in India is poised for exponential growth, with certified sustainable warehouse space expected to quadruple from current levels to approximately 270 million sq. ft by 2030, according to a report released by global real estate services company JLL on Wednesday.
Since 2019, Grade A warehousing stock across India's major cities has expanded dramatically, growing 2.5 times from 88 million sq. ft to an impressive 238 million sq. ft by 2024. This growth reflects the increasing demand for high-quality storage and distribution facilities as the country's economy modernises, and e-commerce continues its rapid expansion, the report said.
More striking is the rise of institutional-grade warehousing space, which has tripled from 28 million sq. ft in 2019 to 90 million sq. ft by end of 2024. This surge demonstrates the growing confidence of major global investors who are bringing international sustainability standards to the Indian market, according to the report.
"Out of the 90 million sq. ft of institutional Grade A supply, around 72 per cent or 65 million sq. ft is green certified or at different stages of green certification currently. Perhaps the most encouraging is that this 65 million sq. ft is anticipated to quadruple by 2030, as institutional players prioritise sustainability through LEED, IGBC, and other certifications. This green revolution isn't just good for the environment; it represents a fundamental shift toward future-proofed assets with improved operational efficiency, reduced energy costs, and enhanced marketability," the report observed.
"India's green warehousing transformation is driven by not only Institutional investor-backed developers but also by corporate occupiers or tenants. The Net Zero Goals of most corporates are leading them to choose warehouses that are Green Certified. JLL analysis shows that occupiers are focusing on 30 – 40 per cent savings in energy consumption (over a project lifecycle) and water savings apart from recycling of waste, green materials etc," said Yogesh Shevade, Head – industrial & logistics, India, JLL.
With a visible supply pipeline of approximately 260 million sq. ft of institutional supply by 2030 (representing 70 per cent of all Grade A forecasted supply), and institutional players contributing approximately 80 per cent of compliant green warehouse supply, India's green warehousing sector is positioned for transformative growth.
The research also identifies significant potential in retrofitting existing non-green Compliant Grade A stock, avenues of funding Green warehouses to future-proof these assets, the report added.
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