Dark store surge set to spur realty demand

Quick commerce (qcom) firms are poised to impact India's real estate landscape as they expand their dark store networks to meet the growing demand.

- PRACHI PISAL

In 2023, the demand for dark store space in India reached 24 million square feet (msf). According to a joint study by JLL and Miebach Consulting, this demand is projected to grow at a compound annual growth (CAGR) rate of 12 per cent, reaching 37.6 msf by 2027.

According to Deloitte, the country's q-commerce market is estimated to grow up to $40 billion by the calendar year (CY) 2030 at a CAGR of 45 per cent.

The real estate requirements for dark stores are different when compared to retail outlets. Dark stores are mini warehouses spanning an area of 2,500 to 4,000 square feet (sq ft).

The locations are identified on factors such as consumer demand, lease rentals, traffic during peak hours, space for logistical operations, and delivery partners to move in and out.

"Consumer habits are shaped in a way that they expect quicker delivery and are more used to online shopping. Dark stores are located in a way that the q-com platforms can deliver in 15 to 30 minutes," said Vimal Nadar, senior director and head of research, Colliers India.