Commercial realty has been a rescuer for the realty sector in the last few years, with the residential segment going through a tough phase. A significant part of this success can be credited to the Logistics & Warehousing segment. With the growing online consumer base, improved standard of living and the availability of multiple Indian and global brands, the need for a seamless supply chain is paramount. Colliers International has projected the investment inflow in the sector to likely touch INR 495 billion (USD 6.9 billion) by 2021, with existing players expanding their portfolio and new entrants in the market. The culmination of all these has been marked by the rise of Bhiwandi, a suburb town near Mumbai, and the new logistics epicentre, especially for the eCommerce giants.
The transformation into a logistics & warehousing hub:
There are numerous factors, that have contributed to the rise of Bhiwandi as a logistics and warehousing hub – from ancestral land parcels to government initiatives. Traditionally, people in that region have owned huge land parcels for generations, with farming being the primary as well as family occupation. With rapid urbanization and rising land costs, most landowners gave up farming and leased out lands to build warehouses in a bid to achieve better ROI. The industrial status granted to logistics and warehousing sector also played a pivotal role as it made it easier to avail long term loans for building warehouses and logistics centres. The manufacturing units in Bhiwandi also cashed in on the availability of warehousing facilities in the proximity, further propelling its rise.
What makes Bhiwandi the ideal choice?
The cluster of warehouses and logistics centres in Bhiwandi are quite strategically placed in the north-west corridor of Mumbai. The region benefits from superior road network to Thane and Mumbai, enabling faster and easy delivery of goods to a large consumer base in the city. It is well connected to the international and domestic airports in Mumbai, and with other regions through the National Highway number 3. It is in high demand with some of India’s biggest eCommerce and automobile companies for its warehouse and logistics centres, and with Third Party Logistics companies for the multi-faceted benefits it provides. The demand and prices are also estimated to rise with the improvement in connectivity through the upcoming Metro Line 5, the Thane – Bhiwandi – Kalyan route, scheduled to be completed by 2022.
As per Colliers’ Indian Industrial and Warehousing Market Report 2019, occupiers seeking large facilities should consider leasing warehouse space in Bhiwandi. Developers should also consider building Grade-A quality warehouses in the nearby areas of Sape and Padgha. They can also leverage technology solutions to optimize costs and offer cost-effective solutions to occupiers, making Bhiwandi a more lucrative proposition than it already is.
