Agriculture World

CBRE findings shows that Cold Storage Real Estate (RE) capacity will double by 2023

Chintu Das
Chintu Das

India's leading real estate consulting firm, CBRE South Asia Pvt. Ltd. on October 12 delivered its extensive discoveries on the CS segment in the nation and the elements which would prompt its hearty development. The discoveries by CBRE expressed that the CS section in India is relied upon to observe noteworthy development throughout the following not many years on the rear of a solid customer and industrial base. Following the COVID-19 episode, the interest for CS is likewise being additionally filled by a more extensive omni-channel dissemination of F&G across tier I and tier II urban communities in the nation. 

Further, the cold chain system would likewise assume an indispensable function in lessening the loss of the produce and improving CS efficiencies. 

States including Gujarat, Uttar Pradesh, Maharashtra, West Bengal, Punjab, Andhra Pradesh, Haryana, Bihar, Madhya Pradesh, and Karnataka represented 91% of the absolute CS limit in India in 2019. The overall CS RE load of in the nation is assessed to arrive at 1,400 – 1,500 million sqft. by 2023. 

Mr. Anshuman Magazine, Chairman, India and SouthEast Asia, Middle East and Africa, CBRE stated, "CS facilities assume a fundamental function in improving the time span of usability of items and are a significant empowering agent for a few businesses working across fresh food production and conveyance; alongside medical care and different items, for example, flowers and synthetic chemicals. Considering the capability of the CS segment in the nation, we anticipate that purchaser and industry factors in India would keep on drawing in light of the leading players in the coming years." 

Mr. Ram Chandnani, Managing Director, Advisory and Transaction Services India, CBRE South Asia, stated, "The CS segment has the capability to positively impact the environment of the F&B business. In this digital world and improved web access, we expect the interest for OFD services in both rural and metropolitan zones to develop and additionally push the requirement for CS facilities in the nation." 

Mr. Abhinav Joshi, Head of Research, CBRE India, further included, "Expanding urbanization and an ascent in retail food processing have been quickening the interest for items that need proficient CS facilities. Nearby staple and departmental stores are additionally turning out to be more brilliant and creating innovative approaches to convey food, in this manner growing the market for OFD services and thus CS facilities." 

Additional Growth Drivers: 

Other development drivers of the Indian CS fragment incorporate the developing inclination for more beneficial food without additives by the youthful and working-age populace. It would help the requirement for CS facilities. Furthermore, customary inclinations in India have consistently been higher for fresh produce,  further driving the requirement for setting up CS facilities closer to residential locations. At this point, the rise of the 'cloud kitchen' idea is likewise prone to help interest for CS facilities. Additionally, the size of the online F&G retail industry is probably going to fourfold by 2022; and the size of the dairy business is probably going to dramatically increase by 2023. Government activities to lessen post-harvest waste, strengthen investment, and improve logistics efficiencies are additionally expected to help the general CS capacity, worth and RE stock.  

The extended development of F&G, online F&G, dairy, food preparation, and pharma ventures in the upcoming years will drive the interest for CS and decrease item wastage. CS facilities are likewise vital for the advancement of the rural economy as they would interface the commercial centers over all areas. 

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