Mumbai Takes the Lead as Private Equity Investors Bet on Warehousing Facilities

Since the tech boom, the investment landscape has evolved, with angel investors, venture capitalists, and multinational companies all seeking high-potential ventures. The post-pandemic surge in e-commerce has significantly impacted related sectors, including warehousing, supply chain, manufacturing and logistics. Beyond public stock exchanges, private equity investors are increasingly focusing on private ventures. Here's a summary of private equity investments in the warehousing sector during the first half of 2024.

A Summary of Private Equity Investments in 2024 H1

In the first half of 2024, private equity investors shifted their focus from commercial properties like office spaces to warehousing facilities. This trend is driven by the post-pandemic remote working conditions and the rising demand for facilities that enhance the e-commerce supply chain for logistics companies by efficient warehouse management. Private equity investments in the warehousing sector accounted for over 50% of the total $3 billion invested in 2024 H1, up from $2.6 billion in 2023 H1¹. Warehousing facilities received the largest share, at 52%, followed by residential real estate at 29% and office spaces at 20%.

The surge in investment in residential real estate, with a remarkable 209% increase from $277 million in 2023 H1 to $854 million in 2024 H1, reflects growing demand for luxury homes and infrastructural development. However, the bulk of investments have been directed towards the industrial development sector, specifically warehousing for logistics companies, due to the expansion of the e-commerce industry. Government initiatives aimed at improving logistics and supply chain operations across the country may have also influenced these investment trends.

2024 H1 Private Equity Investments in Major Indian Cities

Among major Indian cities, Mumbai has emerged as a leader in private equity investments. The city saw an increase in inflows from $1.242 billion in 2023 H1 to $1.701 billion in 2024 H1. The warehouse space in Mumbai received a staggering 88% of the total private equity investment in the city, amounting to $1.5 billion. The residential sector received 12% of the total, equivalent to $201 million.

Investment in Mumbai's warehouse space reached an all-time high of $1.532 billion in 2024 H1, a 176% increase from $555 million in 2023 H1. Mumbai and Chennai were the top cities for warehousing investments, receiving $1.5 billion and $32.3 million, respectively. Private equity investments in Mumbai's warehousing sector focused on e-commerce, logistics, and third-party logistics (3PL) facilities.

The first half of 2024 has reinforced the belief that India is becoming a prime market for investors due to its economic stability and growth. While Western countries remain cautious due to global inflation, India's commercial real estate sector continues to thrive, bolstered by factors such as return-to-work mandates, increase in warehouse management systems and increased office occupancy.

Lodha Industrial and Logistics Park, Palava and Lodha Logistics Park, Kurla

At Lodha, we anticipate market trends to stay ahead of the curve. Our world-class warehousing and logistics facilities at Palava and in-city warehousing at Kurla, exemplify this forward-thinking approach for manufacturing in India as a one of the top logistics parks in India.

Being one of the best industrial parks in India, LILP ensures the best integrated logistics experiences and provides the best warehouses in Mumbai compared to warehouse in Navi Mumbai, industrial plots, industrial land for sale, industrial property for sale, industrial plots in Bhiwandi, industrial plots near Mumbai, industrial plots in Taloja, industrial plots in Thane, industrial plots in Navi Mumbai, industrial land for sale in Panvel, industrial land for sale in Mumbai, warehouse in Bhiwandi, warehouse in Taloja, warehouse in Kurla, warehouse in Thane, warehouse in Palava and distribution centres in Mumbai.

Lodha Industrial and Logistics Parks (LILP) cover over 800 acres and feature top-notch amenities such as plug-and-play units, built-to-suit warehousing, industrial plots, 24x7 water and electricity, wide roads, parking facilities, and stringent security. LILP not only streamlines business operations but also aligns with the Government's vision of establishing India as a logistics hub. Designed to cater to the growing market demands, LILP represents the future of warehousing in India.