The demand for Warehouse Investment in India has increased, as the Indian warehousing market attracts attention and interest from domestic and global institutional investors. The Economic Times claims that the country’s industrial and warehouse sectors have received more than Rs. 25000 crores in investment since 2017. By 2021, this number is likely to reach Rs. 50,000 crores, considering the demand for logistics that encourages future investments.
As e-commerce has flooded our lives since COVID, there has been a sharp increase in reliance on digital platforms. People use e-commerce platforms for all their needs, which is why the demand for delivered goods has reached its peak. To supply the market, companies have begun to lease out properties closer to city areas, where they can reach a larger segment of the population without sacrificing their turnaround time. Warehouse investment properties are thus extremely in demand.
Pre Leased Warehouse Investment -Pros
- Warehouses cost less than commercial spaces, which increases the occupancy rate. Tenants stay for longer times, from 9 to 15 years, making it a stable investment.
- Construction costs for warehouses are much lower. From the perspective of commercial real estate, warehouses become an affordable option by a significant margin. Setting up a warehouse also takes less time, only about three years, compared to building an office space, which can take up to six months.
- Rental earnings come about much faster from the time of construction. This means they are ideal investments, with minimal waiting periods and long-term security.
Pre Leased Warehouse Investment -Cons
- Since most warehouses are located in suburban areas, the opportunities for Warehouse investments in India to appreciate in value is lower than office spaces, which are usually located within the cities in urban areas.
- Differences in logistical requirements can make it difficult for Pre Leased warehouses for sale to be occupied by prospective tenants.
- To accommodate different requirements of different tenants, warehouse real estate investment requires considerable additional investments to modify spaces.
Warehouse business opportunity
Having considered the above-mentioned points, investment in warehousing in India still comes out to prove itself a more stable investment opportunity than office spaces. Myre finds the best warehouse business opportunities for investors. We stand behind the asset selection process so that you can invest with confidence.
Our advantage over other investment firms is that we provide a risk profile with even investment opportunities, which can put investors at ease.
The minimum lock-in period for the investments with MYRE Capital
Real estate investment is not a part of the asset class. It does not change value every day and does not fluctuate greatly in its value over short periods unexpectedly. However, a minimum lock-in period ensures that your returns don’t erode away due to shorter time frames. With a minimum of one year, you avoid short-term capital tax implications which can eat away more than 30% of your returns. This proves a better investment strategy in the long run.
