Industrial and Warehousing Sector Booms: Demand Soars by 16% Across Major Cities

Leasing of industrial and warehousing spaces jumped 16% in Q1 across 24 major cities, driven by e-commerce, logistics firms, and manufacturers. Tier-I cities saw the most activity with 79% absorption. Manufacturing, logistics, and e-commerce showed strong demand. New supply increased by 39% year-on-year.

The leasing of industrial and warehousing spaces has surged by 16% in the January-March period, according to data from real estate consultant Savills. This growth spans across 24 major cities, fueled by demand from e-commerce players, third-party logistics firms, and manufacturers.

Savills' report highlights that the absorption of these spaces reached 18.5 million square feet in Q1, compared to 16 million square feet during the same period last year. Key tier-I cities, including Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune, accounted for a substantial 79% of this absorption.

Manufacturing led the demand with 35% of the total leasing, followed by third-party logistics at 23%. E-commerce, on the rise, contributed 11%, and retail accounted for 4% of the absorption. Meanwhile, the supply in this sector has seen a 39% increase, tallying up to 22.1 million square feet in Q1.

(With inputs from agencies.)