India's sustainable, green warehousing footprint set to quadruple by 2030: JLL India study
JLL India study
.
Over the last five years, India's warehousing market has undergone a significant transformation and
Grade A warehousing
stock across key Indian cities has grown 2.5 times, from 88 million sq ft in 2019 to 238 million sq ft by 2024.
This expansion is being driven by rising demand for modern storage and distribution infrastructure as India's economy continues to modernize and e-commerce strengthens its hold on the market.
An important trend underpinning this transformation is the rise of institutional-grade warehousing space, which has tripled to 90 million sq ft by 2024 from 28 million sq ft in 2019. This growth signals increasing confidence among global investors, who are bringing higher sustainability and operational standards into India's industrial real estate sector.
Out of the 90 million sq ft of institutional Grade A warehousing stock, around 72% or 65 million sq ft is already green-certified or currently progressing through various certification stages. This green-certified stock is expected to quadruple by 2030 as institutional players push forward with sustainability-led strategies, leveraging standards such as LEED, IGBC, and GRIHA.
'This green warehousing transformation is driven not only by institutional investor-backed developers but also by corporate occupiers or tenants. The
Net Zero goals
of most corporations are leading them to choose warehouses that are Green Certified,' said Yogesh Shevade, Head – Industrial & Logistics, India, JLL.
He also highlighted that occupiers are focusing on 30%-40% savings in energy consumption over a project lifecycle, along with water savings, recycling of waste, and use of green materials.
Institutional investors are playing a pivotal role in advancing this green transition, with more than 45% of the current 90 million sq ft institutional portfolio already certified under established sustainability standards, and a further 10% pre-certified and another 10% undergoing certification.
Since the pandemic, institutional investment in Indian warehousing has doubled, further accelerating the shift towards green-certified assets.
Looking ahead, India's warehousing market is projected to reach 885 million sq ft by 2030. Within this, the pipeline for institutional supply stands at around 260 million sq ft, representing 70% of all forecasted Grade A stock, with 80% expected to be green-compliant.
Retrofitting of non-green Grade A stock and avenues of funding are key opportunities to future-proof assets in India's evolving warehousing landscape.
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