India's industrial and warehousing sector experienced a 17% surge in leasing activity in the first half of 2024, reaching 13 million square feet (msf), as reported by Colliers India. Chennai and Delhi-NCR led with over 3 msf each, while approximately 7.5 msf of new supply was added in the April-June quarter, marking the highest in two years. The June quarter alone saw a 48% rise in demand, with Delhi-NCR capturing 1.8 msf. Third-party logistics (3PL) providers were the largest occupiers, and large deals above 200,000 sq ft constituted 35% of the demand, highlighting robust sector growth.
Leasing activity in India's industrial and warehousing sector surged by about 17% in the first half of 2024, reaching 13 million square feet (msf), according to a report by Colliers India. This increase reflects a robust demand for industrial spaces across key markets.
Chennai and Delhi-NCR emerged as the leading regions, each contributing over 3 million square feet of leasing activity during this period. This growth is part of a broader trend, with approximately 7.5 msf of new supply coming online in the April-June quarter, marking the highest supply addition in the past two years.
On a quarterly basis, the June quarter saw a notable rise in industrial and warehousing demand, with about 6 msf absorbed across the top five cities, a 48% increase from the previous year. Delhi-NCR was particularly active, accounting for 1.8 msf of leasing with a 30% share. This demand was primarily driven by significant activity in Farukhnagar and Sonepat.
The sector's growth is primarily fueled by third-party logistics (3PL) providers, who remain the largest occupiers of warehousing space, representing around 36% of the total demand. Meanwhile, sectors such as engineering, FMCG, and electronics also contributed significantly, each accounting for 12-16% of the demand.
Colliers India projects that with substantial completions in the first half of 2024, the year will likely see an infusion of 20-25 msf of Grade A supply. Large deals, defined as those above 200,000 sq ft, made up about 35% of the total demand, with Chennai and Delhi-NCR leading in these high-value transactions.
In summary, the first half of 2024 has shown a strong uptick in the industrial and warehousing sector, driven by both large-scale deals and consistent demand from logistics and manufacturing sectors. The trend indicates a continued growth trajectory for the sector, supported by favorable macroeconomic conditions and expanding supply.
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