Industrial And Warehousing Leasing Thrives In India In Q1-2024: Report
Industrial and warehousing leasing activity in India's top five cities remained robust during the first quarter of 2024, with Mumbai and Chennai leading the demand, according to a report by professional services and investment management company Colliers.
In the first quarter, a total of 7 million square feet of industrial and warehousing space was leased across Chennai, Mumbai, Delhi NCR, Pune, and Bengaluru. Mumbai and Chennai together accounted for approximately 55 per cent of this demand, showcasing significant traction in these markets.
Delhi NCR witnessed a notable concentration of new Grade A developments, representing around 33 per cent of the total additions during the quarter, as highlighted by the Colliers report.
Of particular interest is the surge in leasing activity in Chennai, where industrial and warehousing space take-up during January-March 2024 nearly doubled compared to the corresponding period last year.
Bhiwandi in Mumbai emerged as the most active market during Q1 2024, with 1.7 million square feet of Grade A demand, followed closely by Oragadam in Chennai. Oragadam surpassed Chakan Talegoan in Pune in leasing activity, indicating shifting dynamics in the market.
Third-party logistics players continued to dominate the industrial and warehousing segment, contributing over 40 percent to the total warehousing demand. Chennai stood out with significant activity in this sector, accounting for approximately 43 percent of the overall demand across the top five cities.
At the national level, retail players constituted 16 per cent of the demand during the quarter, followed by engineering and automobile players, each with a 12 percent share.
The report also highlighted the remarkable growth in leasing activity by e-commerce players, which surged by 2.3 times in January-March 2024 compared to the same period in 2023. This growth trend is expected to continue as the e-commerce sector evolves, driven by increased focus on digital infrastructure and evolving consumer behaviour.
Furthermore, the emergence of quick-commerce players is anticipated to further fuel demand for larger hub-warehouses, indicating a positive outlook for the industrial and warehousing sector in India.
The Colliers report underscores the resilience and potential of the industrial and warehousing market in India, driven by diverse demand drivers and evolving market dynamics.
