Southern India’s Greenbase industrial park witnesses rapid expansion as companies shift supply chains away from China.
To cater to the escalating demand from companies seeking to diversify their supply chains beyond China, the sprawling Greenbase industrial park in southern India is experiencing a surge in modern warehouse construction.
Situated near facilities operated by key players like Foxconn and Daimler, Greenbase has become a hotspot for European and American companies. To meet this burgeoning demand, Greenbase is gearing up to quadruple its industrial park space to a massive 20 million square feet, backed by an $800 million investment. This expansion comes amidst India’s remarkable economic growth, outpacing that of advanced nations, leading to a scramble for leased warehouse space, particularly evident in the final quarter of 2023.
Developers such as Greenbase and Panattoni are actively scouting land across the country to meet the needs of companies looking to expand manufacturing operations outside of China amid escalating geopolitical tensions. India’s robust infrastructure development, including ports and highways, serves as a magnet for developers like Panattoni, which plans to establish warehouse complexes near New Delhi.
Despite the surge in demand, India currently leases fewer warehouses compared to China, indicating significant untapped growth potential in the market. Moreover, investment in smaller warehouses is on the rise, reflecting diverse strategies amidst land scarcity and escalating prices.
However, challenges persist in India’s competitive real estate landscape, with lengthy land acquisition processes often impacting development timelines. Despite these hurdles, the booming demand for warehouse space underscores India’s growing importance as a global manufacturing and logistics hub.
Source: Construction World
