Demand likely to remain strong; E-commerce emerges as the key demand driver
ECONOMY GAINED MOMENTUM IN 2014; MANUFACTURING ACTIVITY TO IMPROVE IN THE COMING MONTHS
The year 2014 has ended on a positive note with the economy reporting green shoots of recovery and business environment turning the corner. After a rather lackluster first few months of the year, the April to September GDP growth has been reported at around 5.5%. While this remains far below the growth achieved in the prior decade, there are strong undercurrents indicating strong momentum in the coming months of 2015. The Index of industrial production (IIP) increased to a 5-month high of 3.8% in November, due to improvement in manufacturing and mining sectors as well as improved offtake of capital goods. In addition, manufacturing output grew by 3% in November, compared to a dip of 2.6% in the same month a year ago.
DEMAND LARGELY STABLE WITH INCREASE IN ENQUIRIES FOR MID-TO-LARGE SIZED SPACES
India Special Report-India Online Retail Driving Realty January 2015
E-Commerce has had a presence in India for more than 15 years now; however its pace of growth has been significant only in the past two years. This has been on the back of a rising internet population, growing smart phone users, limited penetration of organized retail (especially in smaller cities and towns) and favorable demographics in the country.
As investments continue to trickle in, demand for warehousing and office space has picked up
Indian businesses for long have ignored the significance of the logistics sector that continues to remain one of the most under invested sectors in the country. Hence, we have intentionally focused only on the warehousing segment of the logistics sector in this report with a definitive view on the key warehousing markets of Mumbai and Pune.