Manufacturing Sector Fuels Surge in Warehousing Demand: CBRE Report
CBRE South Asia Pvt. Ltd., India's leading real estate consulting firm, has released its report, ‘Fortifying India’s I&L Landscape with a New Manufacturing Growth Formula.’ The report highlights that the manufacturing sector’s expansion has significantly boosted warehousing demand, with the share of sectors such as engineering & manufacturing, electronics & electricals, and auto & ancillary rising from 15% in 2019 to 25% in H1 2024. Warehousing leasing from these sectors reached 4.1 million sq. ft. in H1 2024.
Pune recorded the highest increase in warehousing space uptake by manufacturing players, growing from 6% in 2019 to 13% in H1 2024, followed by Delhi-NCR at 18% and Kolkata at 12%. The rise is driven by factors such as the China + 1 strategy and the Production Linked Incentive (PLI) scheme covering 14 sectors
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “Amidst evolving global geopolitical landscapes and economic challenges, India presents a compelling opportunity for growth. India’s manufacturing sector is on the cusp of a transformative journey, attracting significant interest on the global stage. This remarkable trajectory is driven by a combination of factors, including a stable investment environment, strategic government initiatives, and a thriving domestic market.
Continued economic development in both leading and emerging Asia Pacific markets will boost consumer demand for manufactured goods and further fuel the growth of the region's manufacturing sector”.
