Industrial and Warehousing Demand Sees 17% Surge in Top 5 Indian Cities
Industrial and warehousing demand has surged by 17% in the top five Indian cities, driven by a robust increase in leasing activities, according to a report by Colliers India.
Industrial DemandWarehousing DemandReal EstateTop Indian CitiesColliers IndiaReal Estate MumbaiOct 16, 2024
Third-party logistics (3PL) players accounted for 35% of Grade A space uptake, followed by the engineering and FMCG segments. The supply of industrial and warehousing spaces rose 29% year-over-year (YoY) in the first three quarters of 2024, reaching about 22 million square feet. Delhi-NCR and Chennai cumulatively accounted for 53% of the overall leasing activity during this period.
At a micro-market level, Bhiwandi in Mumbai saw 3.7 million square feet of leasing activity in 2024, followed by Oragadam in Chennai and Chakan-Talegaon in Pune, both of which recorded more than 2.0 million square feet of demand. These areas continue to drive warehousing demand in their respective cities.
On a quarterly basis, Q3 2024 saw about 7.3 million square feet of industrial and warehousing demand across the top five cities, marking an 18% increase YoY. Delhi-NCR continued to lead the demand with 2.3 million square feet of leasing, representing about one-third of the total demand. The uptake was particularly significant in the Bhaproda and Kulana micro markets.
Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India, stated, 'With increased demand for quality Grade A spaces equipped with sustainable and technologically advanced features, leasing momentum by such firms is likely to continue over the next few years.'
The rise of quick commerce players is expected to further catalyze demand for larger hub-warehouses across major urban centers. The electronics segment, in particular, has shown heightened traction, with leasing activity doubling in the first three quarters of 2024 compared to the same period in 2023.
Colliers India is a leading global real estate advisor with a strong presence in the Indian market. The company provides comprehensive services in industrial and logistics sectors, helping clients navigate the complex real estate landscape and capitalize on growth opportunities.
Frequently Asked Questions
What is the percentage increase in industrial and warehousing demand in the top five Indian cities?
The demand has increased by 17% annually in the top five Indian cities.
Which segments are leading the Grade A space uptake?
Third-party logistics (3PL) players are leading with 35% of the Grade A space uptake, followed by the engineering and FMCG segments.
How much has the supply of industrial and warehousing spaces grown YoY in 2024?
The supply has grown by 29% year-over-year in the first three quarters of 2024.
Which micro-markets are driving the most leasing activity?
Bhiwandi in Mumbai, Oragadam in Chennai, and Chakan-Talegaon in Pune are the micro-markets driving the most leasing activity.
What is the expected impact of quick commerce players on industrial and warehousing demand?
The rise of quick commerce players is expected to catalyze demand for larger hub-warehouses across major urban centers.
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