Mumbai, June 8 -- For investors in India's real estate market, it isn't just office properties and residential developments that are vying for their money but also the more timid warehousing space.

Warehouses emerged as a key investment segment the past 4-5 years driven by strong demand from logistics, e-commerce, manufacturing, and retail occupiers. However, investors are becoming increasingly selective now, prioritizing grade A assets in top-tier cities and favouring tech-enabled and environmentally sustainable warehouses, according to industry participants.

Grade A warehouse stock across India's eight primary markets grew at a compound annual growth rate of 21% over the past five years, reaching 183 million sq.ft. in 2023-24, credit ...