ORAGADAM - In southern India, the demand for land in an expanding industrial park is soaring as companies from Europe and America rush to set up modern warehouses and factories amidst India's economic growth. Greenbase industrial park, near major plants like those of Apple supplier Foxconn and truckmaker Daimler, is particularly sought after. The park, operated by Blackstone and real estate tycoon Niranjan Hiranandani, has seen a surge in leasing inquiries, with discussions ongoing with multiple clients considering shifting their operations from China.

To meet this escalating demand, Greenbase plans to invest $800 million to expand its industrial park space significantly. This reflects a broader trend in India's real estate market, where there's a rush for leased warehouse space driven by the country's economic growth surpassing that of advanced nations.

Traditionally, businesses in India have relied on inadequate storage facilities known as godowns, but foreign industrial giants prefer modern warehouses. Developers like Greenbase are therefore scouting for land nationwide, facing challenges in land acquisition as they prepare to invest millions of dollars in new projects.

India's attractiveness as a manufacturing and export hub, coupled with its large consumer market, is drawing significant interest from international companies. Infrastructure improvements, including ports and highways, have further enhanced India's appeal for investment. Companies like Panattoni are seizing this opportunity, with plans to establish multiple warehouse complexes across the country.

However, India still lags behind China and the United States in terms of warehousing infrastructure. The demand for Grade A warehouses is expected to grow, especially in sectors like automobile, engineering, retail, and e-commerce.

While developers are concentrating on major cities, some, like Investcorp, are focusing on smaller warehouses. Nevertheless, the process is not without challenges, as high land prices and complex ownership structures often prolong acquisition procedures. Despite these obstacles, the enthusiasm for India's industrial real estate market remains high, driven by the country's promising economic prospects.