New Delhi: Leasing of industrial and warehousing spaces increased 23 per cent year-on-year to 135 lakh sq ft in January-March this year across 19 major Tie I, II and III cities in the country on demand from third-party logistics players and manufacturers. According to Savills India.
Real estate consultant Savills India on Thursday released demand data for industrial and logistics sectors.
The year started impressively, with strong absorption or leasing of 13.5 million (135 lakh) sq ft in January-March 2024, compared to 11 million (110 lakh) sq ft in the year-ago period.
Tier I cities saw 78 per cent absorption, while Tier II and Tier II cities contributed the remaining 22 per cent.
Leases of industrial and warehousing spaces in tier I cities rose 25 per cent to 10.5 million (105 lakh sq ft) during January-March 2024 from 8.5 million (84 lakh sq ft) in the year-ago period.There was a 20 per cent increase from 2.5 million (25 lakh sq ft) to 3 million (30 lakh sq ft) in Tier II and III cities.
Tier I cities include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Delhi-NCR and Pune. Tier II and Tier III cities include Guwahati, Bhubaneswar Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat and Indore.
In terms of absorption, Delhi-NCR leads with the highest contribution of 21 per cent in January-March 2024, followed by Pune and Bengaluru, with 1 per cent each. Pune's contribution to the overall absorption increased from 12 per cent in Q1 2023 to 12 per cent in Q1 2024, while for Mumbai it declined from 12 per cent in Q1 2023 to 7 per cent in Q1 2024."The growing trend of supply chain outsourcing has resulted in expansion of 3PL (third-party logistics) players in tier II and III cities, leading to increased demand for warehousing space. The manufacturing sector contributes more than 25 per cent to the total absorption, With the improvement in manufacturing activities, manufacturing warehouses are also likely to increase,” said Srinivas N, Managing Director, Industrial N Logistics, Savills India.
The e-commerce sector is likely to see increased activity going forward, he said, adding that the sector is increasing its urban distribution and expanding its reach to tier II and III cities.
Srinivas said, “Tier II and III cities are likely to witness significant growth as key centers of sourcing, consumption and distribution."
Real estate consultant Savills India on Thursday released demand data for industrial and logistics sectors.
The year started impressively, with strong absorption or leasing of 13.5 million (135 lakh) sq ft in January-March 2024, compared to 11 million (110 lakh) sq ft in the year-ago period.
Tier I cities saw 78 per cent absorption, while Tier II and Tier II cities contributed the remaining 22 per cent.
Leases of industrial and warehousing spaces in tier I cities rose 25 per cent to 10.5 million (105 lakh sq ft) during January-March 2024 from 8.5 million (84 lakh sq ft) in the year-ago period.There was a 20 per cent increase from 2.5 million (25 lakh sq ft) to 3 million (30 lakh sq ft) in Tier II and III cities.
Tier I cities include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Delhi-NCR and Pune. Tier II and Tier III cities include Guwahati, Bhubaneswar Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat and Indore.
In terms of absorption, Delhi-NCR leads with the highest contribution of 21 per cent in January-March 2024, followed by Pune and Bengaluru, with 1 per cent each. Pune's contribution to the overall absorption increased from 12 per cent in Q1 2023 to 12 per cent in Q1 2024, while for Mumbai it declined from 12 per cent in Q1 2023 to 7 per cent in Q1 2024."The growing trend of supply chain outsourcing has resulted in expansion of 3PL (third-party logistics) players in tier II and III cities, leading to increased demand for warehousing space. The manufacturing sector contributes more than 25 per cent to the total absorption, With the improvement in manufacturing activities, manufacturing warehouses are also likely to increase,” said Srinivas N, Managing Director, Industrial N Logistics, Savills India.
The e-commerce sector is likely to see increased activity going forward, he said, adding that the sector is increasing its urban distribution and expanding its reach to tier II and III cities.
Srinivas said, “Tier II and III cities are likely to witness significant growth as key centers of sourcing, consumption and distribution."
