35% growth in logistics sector in 2021 likely: Study
The Welspun One Logistics Parks (WOLP) report has estimated that the warehousing and logistics asset class could be among the fastest to recover from the coronavirus crisis. Revising its earlier prediction of the sector recording a 25% demand, the recent study predicts that the warehousing and logistics industry will grow at 35% in 2021.
“The transition of retail to online and larger inventory levels by ecommerce players will speed up the warehousing demand further. The resulting impact will be felt substantially in demand for inner-city logistics and cold chain facilities,” Welspun One Logistics Park managing director Anshul Singhal explains. The sector will also benefit from the fund managers looking at warehousing and industrial real estate and policy initiatives like GST, infrastructure status and 100% FDI approvals.
“There is significant amount of cash available to be invested in the warehousing and logistic space. The focus will be on long-term strategy, but in the short term, funds will be cautious to put in money,” said Aloke Bhuniya, CEO of Ascendas Firstspace stated.