Industrial-warehousing space demand up 17% in first nine months of 2024: Colliers
Oct 16, 2024
Mumbai (Maharashtra) [India], October 16 : With increase in economic activities the demand for industrial and warehousing spaces during January to September this year registered a 17 per cent annual growth across the top five cities in India, according to a report by the global commercial real estate services company, Colliers.
The leasing activity demand during the Jan-Sept period stood at a 20.2 mn sq ft and the top five cities are Bengaluru, Chennai, Delhi NCR, Mumbai, Pune.
The quarterly average space uptake has steadily increased from 5.7 mn sq ft in 2021 to 6.7 mn sq ft in 2024, indicating steady and sturdy growth in industrial and warehousing demand, the report says.
It says, during the first three quarters of the year, Delhi NCR and Chennai cumulatively accounted for 53 per cent share in the overall leasing. While Third Party Logistics (3PL) players continued to dominate the overall demand, contributing to 35 per cent share in overall leasing.
As per the report engineering and FMCG segments were the top contributors to this demand for industrial and warehousing spaces.
"with increased demand for quality Grade A spaces replete with sustainable and technologically advanced features, leasing momentum by such firms is likely to continue over the next few years" says Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.
The trend has led to improved developer confidence in as the Jan-Sept-2024 period saw supply infusion rising by 29 per cent year on year.
Delhi NCR alone accounted for about 35 per cent share in overall completions during the nine months of this year.
The supply of industrial and warehousing spaces remained healthy in the third quarter across top five cities of the country. Amidst favourable demand-supply dynamics, overall vacancy levels at the end of Q3 2024 remained stable at around 12-13 per cent, as per the Colliers.
Going further, in terms of deals during the first nine months of this year, the large deals accounted for about 40 per cent of overall demand. A vast majority of these larger deals came from 3PL players, Engineering and FMCG segments also saw considerable large-sized deals.
