Top five cities see 17 million Sq Ft leased in industrial and warehousing sector Q1-Q3 2023
economictimes.indiatimes.comwarehousing demand across the top five cities was recorded at 17 mn sq ft of gross leasing in the first three quarters of 2023.
Despite a relatively slower growth during H1 2023, leasing activity picked up in Q3 2023, registering a 55% QoQ growth.
Pune led the demand during the nine months with a 24% share, closely followed by Mumbai at 23%, both edging ahead of the usual front-runner, Delhi NCR. Overall, Bhiwandi remained the most active micro-market in Mumbai, while Chakan-Talegaon continued to be the preferred market for industrial occupiers in Pune.
“In addition to demand driven by 3PL and retail segments, there is a surge in demand from manufacturing players led by FMCG companies, electronics, Auto & Auto ancillary, EV and Semiconductor companies. FMCG companies accounted for about 1.5 mn sq ft of absorption of industrial & warehousing space during the first three quarters of 2023, a twofold rise compared to last year.
The trend is set to continue owing to support from the government for the manufacturing sector led by initiatives like PLI (Production linked Incentive) and Make in India,” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
Leasing by FMCG players surged over two-fold during YTD 2023
3PL players dominated demand during the Jan-Sept period, at 40% share, followed by engineering players, garnering 17%. At the same time, leasing by FMCG players experienced a two-fold rise as they expanded their presence in key markets such as Delhi NCR and Pune.
