Maharashtra and Gujarat Emerge as National Logistics Hubs as Air and Road Infrastructure Transforms Last-Mile Delivery

Western India, particularly the states of Maharashtra and Gujarat, is reportedly witnessing a significant transformation into a national hub for last-mile logistics. Industry experts have attributed this development to substantial upgrades in air and road infrastructure, an expanding network of regional airports, and major highway expansions across the region.

Key Factors Driving the Logistics Transformation

According to industry reports, the past decade has seen numerous new airports become operational in Tier II and Tier III cities across western India. This expansion has enabled faster air-cargo and express shipment services beyond traditional metropolitan hubs, creating a more distributed logistics network.

Simultaneously, national highways and rural road networks have reportedly undergone significant expansion, considerably improving connectivity between urban centres, suburbs, and peripheral regions. The Mumbai-Nagpur Expressway has emerged as a game-changer for Maharashtra's economic landscape, facilitating smoother movement of goods across the state.

Logistics companies are increasingly deploying hybrid fleets while establishing urban micro-warehouses and micro-fulfilment centres. These strategic investments reportedly help accelerate final-leg delivery to customers across the region. The warehousing and logistics sector recorded 8 per cent growth in the first half of 2024, supported by over USD 1 billion in investments.

Enhanced Delivery Capabilities Across Major Cities

These infrastructure upgrades have reportedly enabled courier and e-commerce companies to offer same-day or next-day deliveries across substantial portions of Maharashtra and Gujarat. Major cities including Mumbai, Pune, Surat, and Ahmedabad are now benefiting from this improved logistics ecosystem.

The Surat real estate market is experiencing strong growth partly due to enhanced connectivity, while the Ahmedabad real estate market continues to offer investment opportunities as Gujarat's economic powerhouse.

Industry observers have noted a notable shift reducing reliance on major city hubs. Cargo volumes from smaller towns and Tier II-III cities, transported via air or road, are reportedly increasing. This decentralisation is helping decongest traditional supply chains while boosting overall logistics efficiency. The overall volume of e-commerce shipments and demand for timely delivery continues to surge, reinforcing the need for robust logistics infrastructure.

Implications for Consumers, Businesses, and Real Estate

Consumers across the region reportedly stand to benefit from faster deliveries, more reliable timelines, and improved access to products, even in suburban or smaller-city locations. This enhanced accessibility is transforming shopping patterns across western India.

For businesses and e-commerce firms, the improved infrastructure creates opportunities to expand their reach beyond metropolitan areas. Companies can reportedly tap into Tier II and Tier III demand without compromising on delivery efficiency. The rise of Tier 2 cities represents the next big opportunity in Indian real estate and commerce.

Warehousing and Industrial Real Estate Growth

The real estate and warehousing sector is expected to witness increased demand for urban logistic hubs, micro-fulfilment centres, and warehouses located near airports or highway corridors. Recent developments such as Yusen Logistics expanding with a strategic 200,000 sq ft warehouse near Mumbai underscore this trend.

Land values in strategic zones near logistics infrastructure are potentially set to appreciate significantly. The Indian warehouse leasing sector recorded 8 per cent year-on-year growth in 2024, reflecting strong institutional interest in the segment. Similarly, Alta Capital acquired over 2 million sq ft in prime logistics assets for INR 840 crore, highlighting investor confidence in the sector.

Regional Economic Development

Improved logistics capabilities are expected to catalyse commercial and economic activity in secondary cities, helping decentralise growth from metropolitan areas. The property appreciation rates in Tier 2 cities are reportedly beating those in metros, signalling a broader economic shift.

This transformation is particularly evident in regions surrounding Mumbai, where infrastructure improvements are boosting realty growth on the East Coast. The mega Thane infrastructure projects worth INR 20,000 crore are further enhancing regional connectivity and supporting logistics networks.

Disclaimer: This article is for informational purposes only. Readers are advised to conduct independent research and consult with qualified professionals before making any investment or business decisions related to logistics infrastructure or real estate.