Industrial leasing growth has been on a steady rise in India, showing significant improvements in recent years. A report by Colliers highlighted the 17% year-on-year growth in industrial and warehousing leasing across major Indian cities in the first nine months of 2024. Let’s explore the key trends shaping the growth in industrial leasing across these cities.
Industrial Leasing Growth in 2024: Key Statistics
The industrial leasing growth across the top five cities—Mumbai, Pune, Bengaluru, Delhi NCR, and Chennai—reached 20.2 million square feet of leased space. This remarkable increase reflects the rising demand for industrial and warehousing spaces. In Q3 of 2024 alone, 7.3 million square feet of space was leased, showing an 18% year-on-year growth.
Top Cities Driving Industrial Leasing Growth
Delhi NCR emerged as a leader in industrial leasing growth, contributing to a large portion of the leasing activities. The region accounted for 2.3 million square feet of leased space, particularly in Bhaproda and Kulana micro markets. This surge indicates the growing importance of these micro markets in the industrial and warehousing sector.
Industrial Leasing Growth and Sectoral Distribution
The demand for industrial leasing growth was primarily driven by third-party logistics (3PL) players, who dominated the market with a 35% share of the total leasing. Meanwhile, companies from the engineering and fast-moving consumer goods (FMCG) sectors also played a significant role, accounting for 32% of the overall space uptake.
Large Deals and Their Impact on Industrial Leasing Growth
A notable trend contributing to the industrial leasing growth is the increased prevalence of large deals. Transactions involving spaces larger than 200,000 square feet made up about 40% of the total leasing activities. This shift demonstrates a growing preference for larger industrial spaces among businesses.
Future of Industrial Leasing Growth
With steady growth in industrial leasing, the sector is expected to maintain its upward trajectory. The quarterly average space uptake has grown from 5.7 million square feet in 2021 to 6.7 million square feet in 2024. This positive trend signals a robust demand for industrial and warehousing spaces, indicating a bright future for the sector.
In conclusion, the industrial leasing growth across India’s major cities continues to rise, driven by key sectors such as logistics, engineering, and FMCG. The trend of larger deals and the steady increase in space uptake further highlights the strength of this industry.
