Booming Industrial Spaces: India's Leasing Surge

Leasing of logistics and industrial spaces in India is projected to reach 50-53 million square feet in 2024, fueled by sustained demand in major cities. This growth is driven by the PLI scheme, retail, e-commerce expansion, and the China+1 strategy. Leasing is expected to remain strong in 2025.

India's logistics and industrial leasing market is set to reach unprecedented heights with an estimated 50-53 million square feet expected to be leased in 2024. Real estate consultant Cushman & Wakefield reports that demand in key cities like Delhi-NCR, Mumbai, and Bengaluru is driving this surge.

The introduction of the Production-Linked Incentive (PLI) scheme in 2020 has been a significant catalyst for this growth, alongside a boom in retail and e-commerce activities which have intensified the need for warehousing. Currently, leasing volumes have already surpassed 41 million square feet across major markets.

Abhishek Bhutani, Managing Director at Cushman & Wakefield, highlights India's strategic advantage in adopting the China+1 diversification strategy. With manufacturing and retail consumption on the rise, the leasing trend appears set to continue into 2025, marking a period of robust industrial activity.