Different Types of Industrial Real Estate that you should know

Industrial real estate in India

According to the sources, in the year 2022, the industrial real estate market experienced a sharp increase of 9%, which sums up to the total gross absorption of around 17.5 million square feet across our country’s top cities. The demand for industrial real estate is resilient even in the third quarter of 2022 at 6.7 square feet, which is the highest since 2021.

Around half of the warehousing demand was led by third-party logistics players occupying around 50% of the warehousing space. The improved market understanding sentiments, better retail provision during the festive season, and higher online transactions contribute to the increase in the demand for warehousing units.

The statistics from the source state that the highest demand of the year 2022 is led by Delhi NCR, with 39% of the total share, followed by 21% in Pune. These logistics warehousing demands are majorly led by the engineering and E-commerce industry.

This type of expansion of various types of industrial real estate will continue to exist as the E-commerce and third-party logistics industries grow. The forecast indicates that industrial real estate will proliferate in the coming years.

Different Types of Industrial Real Estate India

Industrial real estate comes in a variety of forms based on the requirements of different types of industries. Small and medium-sized enterprises require a one or double-storey building. In contrast, large enterprises need a larger area with various premises like warehouse storage, office premises, and factory set-up. Let us discuss in detail the different types of industrial real estate in India.

1. Heavy manufacturing units

Heavy manufacturing units necessitate ample customized space for assembling their heavy machinery. These factories require a lot of room to set up their customized and complex machine processes. Aside from that, they need more space for storage and loading docks for trucks to receive raw materials and send out finished goods. As a result, heavy manufacturing units are typically located in areas with hundreds of square feet available for production, storage, and power supply to carry out production.

2. Light manufacturing units

Light manufacturing units are mainly used to assemble the already manufactured materials to create the final product. This place does not require heavy machinery. Instead, the equipment used to perform such activities is easily portable and can be reconfigured. Therefore light manufacturing units need space for assembling, storing and shipment to other facilities when required.

The demand for light manufacturing units is always high, so it is not difficult to find a potential buyer for these plots.

3. Warehousing industry

Digital E-commerce set-up has made shopping for any type of goods, material or machines easy through the web. Once manufactured, the goods are shipped to various cities and districts to promote the trending concepts of on-time delivery in one day to within one week. In such scenarios, anyone will look forward to a warehouse to store all the stock for immediate shipping within close proximity of the order.

The warehousing plots can be utilized for storing various kinds of goods, groceries, electronics or vehicles. The location of these warehouses plays a significant role in acquiring buyers. Warehouses closer to the city are fast occupying since 1 day delivery of the products is quickly trending.

4. Flex space center

There are many types of industrial real estate in India, each with its advantages and disadvantages. The most common type is the flex space center, typically used for manufacturing or storage purposes. These centers usually have a large amount of space available, making them ideal for companies that need a lot of room for their operations. However, they can also be more expensive than other types of industrial real estate.

These kinds of industrial property sometimes combine offices with production, showroom, or research and development (R&D) facilities. R&D allows the company to research and investigate cutting-edge goods and technology while staying in touch with management and the marketing division.

5. Other industrial sectors

Other common types of industrial real estate in India include data centers and distribution centers. These properties are often used by companies that need to store or distribute products. They usually have a smaller footprint than flex space centers, making them more affordable for small businesses. However, they may have less space than the more significant properties.

Data centers are locations where large computer servers and other telecom switching equipment are housed. These facilities are essential to the operation of the internet and cloud storage.

Distribution warehouses provide storage space for consumer items transported promptly and effectively from a centralized point to various state locations. So these are the types of industrial real estate properties in demand right now in the market.


You can choose from various industrial real estate types to invest in. The right time to invest in industrial real estate is right now because of its phenomenal boom. The G Square is the only place to look if you want to invest in any industrial real estate property. We are south India’s largest and Tamil Nadu’s No. 1 real estate developers. We offer some incredible plot opportunities to choose from for your financial investment goals because we have a solid real estate foundation in south India. Contact us on our website for more information on the available investment possibilities.