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Third-party logistics (3PL) players continued to dominate absorption with about 35 per cent share in overall leasing. | Representative Photo: Wikipedia
The industrial and warehousing leasing sector saw annual growth of 17 per cent, with 20.2 million square feet (msf) leased during the first three quarters of the calendar year 2024 (CY2024) across the top five cities in India, according to a research report by Colliers.
The cities are Mumbai, Pune, Bengaluru, Delhi NCR, and Chennai.
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Vijay Ganesh, managing director, industrial and logistics services, Colliers India, said, “On a quarterly basis, Q3 2024 saw about 7.3 msf of industrial and warehousing demand across the top five cities, an 18 per cent rise year-on-year (Y-o-Y). With 2.3 msf of leasing and about one-third share, Delhi NCR continued to drive quarterly demand. The demand in the region was led by a large uptake of industrial and warehousing space in Bhaproda and Kulana micromarkets.”
Additionally, the quarterly average space uptake has steadily increased from 5.7 msf in 2021 to 6.7 msf in 2024, indicating steady growth in industrial and warehousing demand, the report stated.
Third-party logistics (3PL) players continued to dominate absorption with about 35 per cent share in overall leasing, while space uptake by players from the engineering and fast-moving consumer goods (FMCG) segments accounted for 32 per cent.
Furthermore, large deals (over 200,000 sq ft) accounted for about 40 per cent of the overall leasing. Of the top five deals in the industrial and warehousing sector during the first nine months of CY2024, three involved 3PL players, including DHL, ProConnect, and 20Cube.
Vimal Nadar, senior director and head of research, Colliers India, estimates leasing activity to reach approximately 25-30 msf by the end of the year.
First Published: Oct 16 2024 | 3:21 PM IST
