Industrial & Warehousing demand in India's top 5 cities drops 12% in Q3 2023: Report
industrial and warehousing demand in the city increased to 1.8 million sq ft in Q3 2023 from 0.5 million sq ft in the year-ago period. The city was followed by Mumbai, where the demand increased by 128 percent from 0.5 million sq ft last year to 1.2 million sq ft. Pune registered a moderate growth of 22 percent as the demand increased to 1.6 million sq ft from 1.3 million sq ft a year-ago.
However, the top warehouse market of Delhi-NCR registered a sharp slump, from 3.8 million sq ft last year to 0.9 million sq ft in this year's July-September period. Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! Bengaluru also recorded a drop from 0.9 million sq ft in Q3 2022 to 0.7 million sq ft in the corresponding period this year.
In the January-September period, the total industrial and warehousing demand in the five cities came in at 17.2 million sq ft, down 4 percent as compared to 18 million sq ft in the year-ago period. According to Colliers, third-party logistics players (3PLs) continued to be the top occupiers of warehousing space, contributing to “about 40 percent share in total warehousing demand till date". 3PL space uptake was driven by healthy activity in Mumbai and Chennai particularly, it added.
“Despite global economic headwinds, India’s industrial and warehousing sector remains resilient, closely following the trendline of 2022. Leasing momentum is expected to continue in the final quarter of the year led by 3PL, engineering and FMCG players and is likely to close in the range of 22-25 mn sq ft. Demand outlook from 3PL players remains positive in the medium-term and the sector will continue to dominate the
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