Record-Breaking Demand: India's Industrial and Logistics Surge

The demand for industrial and logistics spaces in India reached a record high, with leasing volumes rising to 76.5 million square feet. Manufacturing, third-party logistics, and e-commerce sectors led the demand. Leasing activities in eight tier-I cities saw significant growth, with Delhi-NCR performing best.

In an unprecedented surge, the demand for industrial and logistics spaces in India reached an all-time high with leasing volumes skyrocketing by 19% to 76.5 million square feet across the nation's 24 major cities, according to data from Savills India.

Significant contributions to this growth came from the manufacturing sector, which accounted for 29% of leased spaces, closely followed by third-party logistics firms at 28%, and e-commerce players holding 12%. In comparison, the prior year's leasing activity stood at 64.5 million square feet.

The nation's core cities played a pivotal role with Delhi-NCR leading in performance, expanding leasing from 9.8 to 13 million square feet. As supply and absorption rates are expected to exceed 80 million square feet next year, India's industrial and logistics sector continues to thrive in its post-pandemic recovery.