Warehousing demand from manufacturing companies up in H1
manufacturing hub is fuelling warehousing demand from manufacturing-related sectors with multinationals setting up factories in the country.
Demand from these sectors climbed to 25% of total domestic warehousing demand in the first half of calendar 2024 from 15% in 2019 led by factors like adoption of the China plus one strategy by multinationals and supportive Indian government policies such as the production linked incentive (PLI) scheme, which currently covers 14 sectors.
During H1 2024, total leasing of warehousing space from manufacturing-related sectors reached 4.1 million sq ft, according to CBRE South Asia, a real estate consulting firm.
According to CBRE's report titled, 'Fortifying India's I&L landscape with a new manufacturing growth formula', Pune showed the highest increase in warehousing and industrial space take-up by manufacturers, growing from 6% in 2019 to 13% in H1 2024. Delhi-NCR and Kolkata saw notable increases, reaching 18% and 12%, respectively, in H1 2024. Industry experts say the government carried out regulatory reforms and improved the business environment, helping draw investments from global manufacturers such as Apple, Samsung, and Boeing in the manufacturing sector.
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