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Ahmedabad Warehousing heading to a Billion Cubic feet
Author – Mr. Monil Parikh
(Director - Parikh Infracon Pvt. Ltd.)
Ahmedabad’s warehousing market has emerged as a key player in India’s logistics and supply chain ecosystem. the city offers exceptional connectivity through its proximity to the Delhi-Mumbai Industrial Corridor (DMIC), Dedicated Freight Corridor (DFC), and major ports like Mundra and Kandla. This strategic location makes Ahmedabad an ideal hub for both industrial and logistics-driven warehousing activities. The surrounding warehousing markets in Ahmedabad are witnessing a boom due to these developments, along with the surge in e-commerce demand.
The growing e-commerce sector, bolstered by increasing online shopping trends, has been a primary catalyst for the demand for modern warehousing facilities in Ahmedabad. Other key sectors fueling this growth include manufacturing, pharmaceuticals, textiles, and chemicals. Third-party logistics (3PL) providers and retail giants are also expanding their presence in the region, further driving the need for high-grade warehousing.
In recent years, the demand for warehousing space has shitied from smaller spaces of 20,000–25,000 square feet to larger facilities of 40,000–45,000 square feet, driven by the scale of operations and inventory management needs of modern businesses. Key client requirements now often include not just storage but also stacking facilities, as well as other specialized features like temperature-controlled zones, loading docks, and office spaces.
Major warehousing clusters such as Aslali – Kheda, Pirana – Bakrol, Sarkhej – Sanand, Changodar – Bavla – Bagodara, Sanand- Viramgam, Naroda cater to diverse industries. Emerging zones like Kadi – Kalol, Bechraji, supported by the development of the Mandal Bechraji Special Investment Region (MBSIR), are becoming hotspots for large-scale logistics operations. These clusters benefit from Ahmedabad’s well-developed road and rail infrastructure, reducing transit times and transportation costs. The proximity to dry ports further enhances Ahmedabad's atractiveness as a warehousing destination.
Rather than traditional investment in commercial or residential properties, investors are increasingly looking at land acquisition in strategic locations for warehousing development. A popular investment strategy is leasing out land on a Build-to-Suit (BTS) basis, where land owners design and build facilities according to client specifications. This model is mutually beneficial as it allows investors to secure long-term, stable income while providing clients with customized solutions that perfectly meet their operational needs.
Gujarat has emerged as a preferred destination for industries, with numerous global companies from the United States, Japan, Germany, South Korea, and other countries establishing or expanding their operations in the state. This influx of internaonal investment is transforming Gujarat into a global industrial powerhouse, driving economic growth and creating new opportunities across its cities and regions.
Despite its advantages, the market faces challenges such as land acquisition difficulties in prime locations and complex regulatory approvals. Addressing these issues will be critical to sustaining long-term growth.
Ahmedabad’s warehousing market is on a growth trajectory, supported by continued industrialization, infrastructure enhancements under initiatives like Gati Shakti, and increasing investor interest. The city is poised to strengthen its position as a logistics powerhouse, offering lucrative opportunities for businesses and developers alike. The boom in demand, combined with modern investment strategies, makes Ahmedabad an exciting prospect for warehousing and logistics-focused developments.
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