Indian industrial & logistics sector's demand grows 22% YoY in Q1 2024

Tier I cities witnessed 78 per cent of the absorption, while tier-II and -III cities accounted for the rest.

Leasing of such spaces in tier-I cities rose by 25 per cent to 10.5 million sq ft during Q1 2024 from 8.4 million sq ft in the year-ago period.

Tier-II and -III cities saw a 20 per cent YoY growth during the quarter to 3 million sq ft from 2.5 million sq ft.

Tier-I cities include Delhi-National Capital Region (NCR), Kolkata, Chennai, Hyderabad, Mumbai, Bangalore, Ahmedabad and Pune. Tier-II and -III cities include Bhubaneshwar, Surat, Indore, Nagpur, Lucknow, Guwahati, Patna, Hosur, Coimbatore, Rajpura and Jaipur.

Delhi-NCR leads with 21 per cent absorption in the quarter, followed by Pune and Bengaluru, with 12 per cent each.

The contribution of Pune to the overall absorption increased from 7 per cent in Q1 2023 to 12 per cent in Q1 2024, while it decreased for Mumbai from 14 per cent in Q1 2023 to 7 per cent in Q1 2024, a news agency reported.

Savills India managing director for industrial and logistics Srinivas N said the manufacturing sector continues to account for over 25 per cent of the total absorption, with improved manufacturing activities likely to drive increased uptake of manufacturing warehouses.

Fibre2Fashion News Desk (DS)