Demand for industrial and warehousing increased by 17 percent in the top five cities of the country.
New Delhi, October 16 (IANS). There has been an increase in demand for industrial and warehousing in the top five cities of the country.
Colliers India’s report released on Wednesday said that during January-September this year, the lease demand for industrial and warehousing in the top five cities stood at 2.02 crore square feet, which shows an annual growth of 17 percent.
The report said quarterly average space occupancy has increased from 57 lakh sq ft in 2021 to 67 lakh sq ft in 2024, indicating steady and strong growth in industrial and warehousing demand.
Third party logistics companies accounted for 35 percent of the Grade A space. This was followed by engineering and FMCG segments respectively.
The supply in the first three quarters of 2024 stood at about 22 million square feet, an increase of 29 percent on an annual basis. During the first three quarters of the year, Delhi-NCR and Chennai accounted for 53 per cent of total leasing.
At the micro market level, Bhiwandi, Mumbai sees 37 lakh sq ft of leasing activity in 2024. It is followed by Oragadam in Chennai and Chakan-Talegaon in Pune. Demand for more than 20 lakh square feet each was seen in both.
“Q3 saw nearly 73 lakh sq ft of industrial and warehousing demand across the top five cities, up 18 per cent from the same quarter last year,” said Vijay Ganesh, managing director, industrial and logistics services, Colliers India.
Delhi-NCR has played a significant role in increasing leasing demand with 23 lakh sq ft of leasing and almost one-third share.
Demand in the region was led by large demand for industrial and warehousing space in Bhaproda and Kulana micro markets.
Additionally, with the increasing demand for Grade A spaces with sustainable and technologically superior amenities, leasing activity by such firms is likely to continue over the next few years, Ganesh said.
The entry of quick commerce players is likely to increase the demand for large hub-warehouses in major urban centres.
–IANS
SKT/AKJ
