Warehouse Investment in India and their Opportunities
The Indian warehousing market has been attracting interest from global and domestic institutional investors. According to The Economic Times, the country's industrial and warehouse sector has attracted investment of Rs 25,000 plus crores since 2017, with its robust demand for logistics fueling future investments, which is likely to reach 50,000 by 2021. So, the overall demand for Warehouse Investment in India has increased.
In the age of e-commerce, people are increasingly relying on digital platforms to fulfill their needs. Since Covid, we've seen a sharp increase in the number of people utilizing e-commerce platforms. The demand for goods has been at an unprecedented high. To keep up with this new trend, some companies have started leasing out warehouse investment properties closer to cities so that they can better cater to a much larger segment of the population without sacrificing their turnaround time.
Pre Leased Warehouse Investment -Pros
Warehouse tenants usually stick around for 9 to 15 years. The low cost of warehouses leads to a high occupancy rate making it a stable investment product.
The construction cost for warehouses is significantly lower. This makes warehousing a more affordable option in terms of commercial real estate by a significant margin. It also takes less time to construct one than an office building, taking six months instead of three years!
The monetization cycle from the time of construction until rental earnings happens much faster, making them ideal investments for those looking into long-term security without sacrificing performance.
Pre Leased Warehouse Investment -Cons
Warehouse investments in India have a lower appreciation potential than Office spaces. This is because most offices are located near urban areas, while many of the country's warehouses are located on suburban plots.
Preleased warehouses for sale can find it challenging to get new tenants, as old and prospective tenants might have different requirements.
In warehouse real estate investment, there will be a considerable amount of money that needs to go into modifying the warehouse for it to have enough space and adequate conditions.
Warehouse business opportunity
- Investment in warehousing in India is more stable when it comes to the consistency of rental as opposed to office space. At WiseX, We go out there and find the best warehouse business opportunities for our investors, thereby giving them the confidence that we truly stand behind our asset selection process.
- This flexibility gives us an advantage over other similar investment firms by providing every opportunity with its risk profile, which is key in determining investor comfort levels.
The minimum lock-in period for the investments with WiseX
Investing in real estate is great because it's not an asset class that changes its value every day or month. That said, the minimum lock-in period for investments made on our platform is one year long to avoid short-term capital tax implications, which can be high at 30% plus and erode most of your returns due to a shorter time frame.