India’s industrial and warehousing demand stable in first half of 2023: Colliers

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New Delhi: Industrial and warehousing demand across the top five cities was stable during the first half of 2023 compared to the same period last year, with 11 million square feet of leasing, professional services and investment management company Colliers said in a report. According to Colliers, Delhi NCR continued to lead demand with 25% share, closely followed by Mumbai at 24.6%.

While most cities saw a single-digit change in demand, Mumbai witnessed a notable 28% year-on-year increase in leasing, largely driven by expansion from players in the third-party logistics (3PL) sector, the report said. Despite global economic headwinds, the industrial and warehousing sector is seeing steady growth backed by rising capital investments, manufacturing output and government policy enablers.

The consistent trend in leasing was primarily driven by 3PL (third-party logistics) operators, accounting for 37% of total leasing during the first half of 2023, followed by FMCG and engineering firms, with 12% and 11%, respectively. “While 3PL continues to lead demand, leasing by FMCG and engineering firms across the major markets in India witnessed a significant rise during the first half of 2023.

Notably, demand from w-commerce rose 68% YoY after a lull in the last few quarters. The overall demand for the industrial and warehousing market has been bolstered by various factors, including increased production capacity, strong government policy support and inclusion of more automated and process driven manufacturing," said Vijay Ganesh, managing director, industrial & logistics services, Colliers India.