India is expected to see a logistics explosion in the next five years, according to a research report from a leading agency. A grand total of 110 logistics parks spread over approximately 3,500 acres are expected to be operational by 2012, accounting for at an estimated cost of US$1 bil. They will house 45 mil sqf of warehousing space with an investment of US$500 mil is expected to be developed by various logistics companies by 2012.

"Since almost one-third of the total realty development in the sector is expected to take place in emerging locations, many tier-2 and tier-3 cities and peripheral locations that offer good connectivity to multiple markets will witness increased activity from logistics players, providing a thrust to the real estate market," said Sanjay Dutt, Joint Managing Director, Cushman & Wakefield India, the authors of the report.

The report singles categorises hubs according to their attractiveness and market potential, with key cities Mumbai, Kolkata, Chennai and Hyderabad highlighted as the established hubs. RFP

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