Rising input costs, muted rentals: why warehousing players need nerves of ‘steel’ to keep rolling

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Synopsis
Prices of steel, which account for 30%-40% of warehouse construction cost, are on fire, making it a major pain point for developers. Add to this the rise in other input costs such as diesel, cement, and labour. Industry hopes an increase in rentals will accommodate costs and keep the growth story intact.

Call it a thorn in the flesh. India’s warehousing sector has been the most resilient asset class in the post-pandemic world. It has been witnessing interest from domestic developers and some of the world’s biggest investors. However, the rising prices of steel, a key component used in warehouse construction, is proving to be a big pain point for warehouse developers, at least for the short-to-medium term. Steel accounts for about 30%-40% of the