CARGOCONNECT-JUNE2026 - Flipbook - Page 79
Logistics Real-Estate FEATURE
explore alternative locations. Gupta explains, “Growth
beyond tier I cities will be driven by the need to move
away from congestion, high land costs, and limited
scalability in metros. Development is shifting toward
corridor-led markets where land availability and connectivity allow for larger, more e昀케cient industrial and
logistics ecosystems.”
In fact, these emerging ecosystems are increasingly
anchored around MMLPS and industrial clusters that
integrate road, rail, air, and port connectivity. As Gupta
highlights, “MMLPs and manufacturing clusters in
locations like Talegaon and Bhiwandi will play a key role
in linking production centres with road, rail, air, and
port networks, improving turnaround times and overall
supply chain efficiency.” This integrated approach is
helping reduce transit times, optimise inventory 昀氀ows,
and strengthen end-to-end supply chain responsiveness.
Complementing this shift is the growing emphasis on
co-locating manufacturing and logistics infrastructure
to enhance operational e昀케ciency. “The next phase of
industrial real-estate will happen outside of tier I cities,
driven by the rise of MMLPs and integrated manufacturing clusters,” Jain notes, and further explains, “Having
manufacturing and logistics facilities in the same place
creates a strong ecosystem that improves supply chain
e昀케ciency and lowers overall logistics costs.”
Policy-led infrastructure development is further
accelerating this transition. Large-scale initiatives such
as industrial corridors and freight connectivity projects
are creating new logistics nodes across non-metro
regions. Narayan underscores this structural shift,
stating, “The next phase of industrial real-estate growth
in India is expected to be driven by manufacturing-led
demand and corridor-based development beyond tier I
markets,” while highlighting that government initiatives
such as PM Gati Shakti, National Industrial Corridor
Development Programme (NICDP), and One District
One Product (ODOP) are accelerating infrastructure
investment and manufacturing cluster development
across tier II and emerging markets.
These developments are already visible across key
industrial corridors and freight networks. Narayan
agrees. “Industrial corridors such as the Delhi-Mumbai
Industrial Corridor, Chennai-Bengaluru Industrial
Corridor, and the Eastern and Western Dedicated
Freight Corridors are creating new logistics nodes,” he
points out, and went on to add, “MMLPs located along
these corridors will increasingly anchor integrated
industrial ecosystems.” This proves that corridor-led
expansion is gradually shifting logistics growth from
a metro-centric model to a network of interconnected
regional hubs.
At the same time, evolving demand patterns are
reinforcing the role of manufacturing within warehousing and industrial real-estate. Quoting a Knight
Frank finding, Narayan observes, “Manufacturing
occupiers accounted for approximately 47% of warehousing transactions. This highlights the growing
role of production-linked supply chains and regional
manufacturing ecosystems.”
While expansion beyond tier I cities is gaining
momentum, urban centres themselves are also wit-
Investors are putting in place strict rules for compliance
and standard ways to report, which makes things more
open and accountable. Tenants are also increasingly
prioritising infrastructure aligned with ESG standards,
which is pushing developers to adopt environmentally
responsible construction practices, energy-efficient
systems, and sustainable operations.
SANDEEP JAIN
Chief Financial Officer, NDR InvIT
nessing the emergence of new asset formats designed
to optimise space utilisation. As Gupta notes, “With
space constraints in tier I cities, there will be a rise in
vertical warehousing and mixed-use industrial hubs
that combine warehousing, light manufacturing, and
distribution within a single ecosystem,” adding that
these new-age assets will help optimise land use while
meeting demand for in-city and near-city logistics.”
This dual-track evolution of expansion outward and
densi昀椀cation within re昀氀ects the industry’s adaptive
response to both spatial constraints and demand
complexity.
Institutional Shift
From structured credit enabling disciplined, BTS asset
creation, to AIFs unlocking patient capital for integrated
logistics parks, and global institutional investors embedding ESG and governance benchmarks, capital is actively
shaping not just the pace, but the quality and direction
of development across the sector. In that sense, 昀椀nancing
is no longer just enabling infrastructure; it is rede昀椀ning
the structural blueprint of India’s logistics backbone for
the next demand cycle.
What is emerging is a more cohesive and institutionally aligned ecosystem where 昀椀nancing frameworks,
asset design, and operational expectations are moving
in tandem. The growing convergence between capital
providers, developers, and occupiers is ensuring that
logistics infrastructure is being built with long-term
scalability, compliance, and e昀케ciency at its core, rather
than as incremental capacity additions.
At the same time, the geographic spread of investment
into corridor-led and non-metro industrial clusters is
expanding the logistics map beyond traditional urban
centres.
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