Leasing activity in the industrial and warehousing sector grew by around 17 percent in the first six months of 2024 from the year-ago period to 13 million square feet (msf), real estate consultancy Colliers India has said in a report.
Chennai and Delhi-NCR micro-markets led the demand, with each accounting for over 3 million square feet of leasing in H1 2024, Colliers’ India Industrial and Warehousing Market report said
About 7.5 msf of new supply was added in the April-June quarter, the highest in last two years, the report released on July 27 said.
Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said on a quarterly basis, the June quarter saw about 6 msf of industrial and warehousing demand across the top five cities, a 48 percent rise from the previous year.
“With 1.8 msf of leasing and 30 percent share, quarterly demand was significantly driven by Delhi-NCR. The demand in the region was led by large uptake of industrial and warehousing space in Farukhnagar and Sonepat micro-markets,” Ganesh said.
With significant completions in the first half of the year, 2024 will likely to witness Grade A supply infusion to the tune of 20-25 msf, he said.
Third-party logistics dominate demand
Third Party Logistics (3PL) players continued to be the top occupier of warehousing space, accounting for about 36 percent of the overall demand.
While 3PL players continued to dominate the demand, space uptake by players from engineering, FMCG and electronics segments was significant with 12-16 percent share each, the report said.
Vimal Nadar, Senior Director & Head of Research, Colliers India, said with strong macroeconomic indicators, the momentum is likely to continue in the second half as well.
In the first half, large deals (above 200,000 sq ft) accounted for about 35 percent of the demand. On a city level, Chennai followed by Delhi-NCR dominated the chunk of large-sized deals.
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