Industrial and Warehousing Spaces Hit Record Demand in 2024

In 2024, the demand for industrial and warehousing spaces in India rose significantly to 645 lakh square feet, largely driven by third-party logistics companies, e-commerce, and manufacturing firms. Tier-I cities saw notable increases, and further expansion is expected in Tier-II and III cities, boosting India's economic growth.

The year 2024 witnessed a record demand for industrial and warehousing spaces in India, reaching a historic high of 645 lakh square feet, primarily steered by third-party logistics, e-commerce, and manufacturing firms, according to Savills India.

Savills India reported a 30% rise in absorption or leasing of such spaces, climbing to 645 lakh square feet from the previous year's 496 lakh square feet. The increase was led by substantial growth in Tier-I cities, where leasing surged 34% to 497 lakh square feet.

The growth was attributed to steady demand from the 3PL and manufacturing sectors, along with heightened interest from FMCG, FMCD, and e-commerce sectors. While Tier-I cities, including metros like Delhi-NCR and Mumbai, saw significant increases, Tier-II and Tier-III cities are deemed emerging hubs, offering ample growth prospects.