Despite the pandemic, the fast growing 3rd party logistics, E-commerce, FMCG, Retail and Pharma sectors have turned up as the saving grace for the Realty sector. This has in turn has led to a boom in the Logistics and Warehousing real estate segment with an expected investment inflow expected to touch INR 495 billion in 2021. Today's existing industry heavy weights and new players are all expanding their portfolio into the Warehousing Real Estate market. In the midst of this scenario, Bhiwandi in Thane has emerged as the new epicenter for Logistics and Warehousing, especially in the case of towering MNCs and E-commerce giants.
There are 3 major reasons why Bhiwandi has emerged as a Logistics and Warehousing hub:
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Vast ancestral lands:
The people of this region were originally farming families with vast pockets of ancestral land which they have owned for generations. With increasing land costs and rapid urbanization in the picture, the famers gave up their profession in return for better ROI by leasing out the land to warehouse developers. This transformed Bhiwandi into a hub for Logistics and Warehousing.
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Government Initiatives:
By granting industry status to the warehousing and logistics sector, the Government facilitated seamless funding through easier access to avail long term loans for developers to build warehouses.
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Manufacturing Industries:
Bhiwandi is already abundant in manufacturing units with newer plants under development. These units harness the convenience of the warehouses in the region for their storage purposes. This steady stream of local demand makes it more viable for further warehouse development.
Factors that make Bhiwandi the perfect choice for warehousing:
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Proximity to consumers:
Bhiwandi is strategically located at the prominent North-West corridor of Mumbai. This provides the Warehouses and Logistics centers superior access to a vast road network to and from Mumbai, the largest consumer base in Maharashtra.
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Logistical placement:
Aside from access to the Mumbai consumer base, Bhiwandi is also well connected to other regions and states due to its proximity to the Domestic and International airports of Mumbai. Furthermore, the National Highway 3 ensures logistical ease for all road-bound goods.
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Large warehouse spaces:
Vast funding and investments in the Warehousing sector in Bhiwandi, as well as availability of large plots of land facilitate the development of large-scale warehouses. This makes it an attractive location for warehousing solutions, especially for large-sized corporations and MNCs. E-commerce giants Amazon and Flipkart have already leased 11 lakh sq. ft. of warehousing space from Singapore-based alternate investment firm Xander to set up fulfillment centers in Bhiwandi.
Future prospect:
Now with the upcoming Metro Line 5 (Thane-Bhiwandi-Kalyan) scheduled for completion in 2022, demand and prices are expected to skyrocket due to the resulting improvement in connectivity, making Bhiwandi a force to be reckoned in the Warehousing Industry.
