Questions, answered.

Modern grade-A warehouses in the Palwal-KMP belt yield 8–10% gross rental (5.5–7% net after taxes and vacancy). Grade-B / older warehouses closer to 6–7%. Compare to residential rentals at 2–3%. Long-term leases (5–9 years) with 3PL or e-commerce tenants are the goldilocks case.

Floor height (min 8m for modern warehouses), plinth area, road width for container access, power load (100+ kVA), proximity to highways / dry ports, and industrial land-use zoning. KMP-adjacent warehouse land in Palwal is trading at premium for this reason.

Grade-A: modern spec (12m+ clear height, wide dock doors, ESFR sprinklers, sealed epoxy flooring, industrial power). Grade-B: older sheds, typically 6–8m height, basic finishes. Buyers of land who plan to build should design for grade-A from day one — Amazon, Flipkart, DHL will not lease anything else. Cost premium is only ~15% over grade-B build.

For a small B2B warehouse, 1–2 acres works. For 3PL / e-commerce fulfillment operators, 5+ acres is standard. Look at plinth area more than land area — usable covered space matters.

Typical maths: raw land + civil + tenant fit-out costs ~₹3,500–4,500 per sqft built-up. Rentals in the Palwal belt are ~₹22–28 per sqft per month for grade-A. Simple payback: 10–13 years. With land appreciation, real IRR pencils out to 14–18% p.a. over 10 years. Sensitive to lease-up time — a 6-month gap kills IRR.

Three belts stand out: (1) KMP Expressway corridor from Palwal to Sohna — pure logistics play, (2) Sector 20 IMT Palwal — HSIIDC-approved industrial land with all utilities, (3) NH-19 (Delhi–Mathura) service road pockets. Sec-20 IMT commands a 20–30% premium for turnkey-ready title.