ICRA expects the warehousing supply across the eight primary markets to grow by 12-14% YoY to 550-570 msf in FY2027, supported by a rising consumption base, and continued policy impetus towards manufacturing (comprising automotive, industrial/ engineering) and third-party logistics (3PL). 3PL and manufacturing sectors are expected to remain the key growth drivers for warehousing demand.

Exhibit: Trends in supply (Top 8 cities)