Industrial & Warehousing Demand Grows 17% in Top 5 Indian Cities: Colliers
From January to September 2024, industrial and warehousing demand reached 20.2 million sq ft, marking a 17% year-on-year growth across India's top five cities. The quarterly average leasing has steadily risen from 5.7 million sq ft in 2021 to 6.7 million sq ft in 2024, reflecting strong demand.
Delhi NCR and Chennai contributed 53% of the total leasing, while Third-Party Logistics (3PL) players led with 35% of the demand. The Engineering and FMCG sectors also played a significant role. Bhiwandi in Mumbai saw 3.7 million sq ft of leasing, followed by Oragadam in Chennai and Chakan-Talegaon in Pune, each with over 2 million sq ft of activity.
“On a quarterly basis, Q3 2024 saw about 7.3 mn sq ft of industrial & warehousing demand across the top five cities, an 18% rise YoY. With 2.3 mn sq ft of leasing and about one-third share, Delhi NCR continued to drive quarterly demand. The demand in the region was led by large uptake of industrial and warehousing space in Bhaproda and Kulana micro markets. Across the top five cities, 3PL firms accounted for the bulk of quarterly demand led by Mumbai and Chennai. Notably, engineering firms accounted for about 26% share in overall demand during the third quarter, with large take up of space in Chennai and Delhi NCR. Moreover, with increased demand for quality Grade A spaces replete with sustainable and technologically advanced features, leasing momentum by such firms is likely to continue over the next few years,” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
