India’s rapidly growing economy and expanding logistics sector have made it a key market for real estate players across the globe. Recognizing this potential, US-based Prologis Inc., world’s largest warehousing firm, has decided to re-enter the Indian markets with an ambitious investment plan. The company is set to invest $500 million (approx) by 2026 to develop a robust portfolio of warehousing spaces across the country. With India’s increasing demand for high-quality logistics infrastructure, Prologis aims to establish itself as a major player in the industry by building and leasing Grade A warehousing spaces in key metropolitan hubs.
Prologis has already explored the Indian real estate market in the past but had to put those plans on hold due to the global financial crisis in the late 2000s. Now, with India’s economy on an upward trajectory, regulatory frameworks improving as well as increasing consumption patterns driving demand for warehousing infrastructure, the firm has planned to make a comeback with a clear vision for long-term expansion.
Top India Markets Will Remain in Focus
The American firm is planning to first build its presence in five major cities including Delhi, Mumbai, Pune, Bengaluru, and Chennai. These cities are prime logistics hubs due to their advanced infrastructure, connectivity to major industrial corridors, and proximity to key consumer markets.
Over the past year, the company has already acquired three land parcels across the country to develop warehousing assets. These include a 200-acre site in Sriperumbudur near Chennai, a 40-acre land parcel in Hosur, and a 30-acre site in Hoskote near Bengaluru. The projects in Sriperumbudur and Hoskote are already under construction, while the development at Hosur is set to commence soon.
Apart from building facilities from the ground, Prologis is also open to acquiring existing assets to accelerate its expansion. The company is exploring partnerships with local developers and operators to scale its operations more efficiently.
India’s warehousing sector has been expanding rapidly, driven by factors such as the rise of e-commerce, improvements in infrastructure, and policy reforms like the Goods and Services Tax (GST), which have streamlined logistics operations across the country. The total warehousing stock in India’s top eight cities currently stands at approximately 438 million square feet, of which around 238 million square feet is Grade A warehousing space.
While Prologis’ entry in India strengthens the competition, the market is already home to several established players, including Indospace, and Blackstone-owned Horizon Industrial Parks. Having said that, the institutional investments in the warehousing sector in India has grown significantly in recent years, with major global investors showing interest in the key markets.
In 2019, institutional ownership of Grade A warehousing space stood at just 28 million square feet. In 2024, this figure had grown to over 100 million square feet, reflecting the rising confidence in India’s logistics and industrial real estate sector.
The Road Ahead: What Does The Future of Warehousing Sector in India Look Like?
The re-entry of Prologis into India is a significant development for the country’s logistics sector. As one of the most experienced and resourceful players in the global warehousing market, Prologis brings advanced design, operational expertise, and best-in-class warehousing solutions that can elevate the overall standards of the industry.
Additionally, the firm’s investment is expected to generate employment opportunities, boost local economies, and attract further investments from global players looking to tap into India’s growing logistics market. As businesses across e-commerce, retail, manufacturing, and third-party logistics continue to expand, the demand for Grade A warehousing facilities will only rise.
