India logistical sector: Industrial and logistics sector leasing to grow by 14% in 2024
In 2023, the industrial and logistics sector experienced a notable increase in absorption, reaching 49.4 million sq ft, reflecting a growth of 6.7% compared to the 2022 absorption of 46.3 million sq ft, as reported by Savills India. The absorption trend was predominantly observed in Tier-I cities, constituting 75% of the total, while Tier II and III cities contributed the remaining 25%. The ascendance of Tier II and III cities as crucial sourcing hubs has played a pivotal role in enhancing distribution efficiency. The surge in demand within the manufacturing and retail sectors, coupled with sustained requirements from the 3PL sector, has been the primary driving force behind this absorption.
Managing Director of Industrial and Logistics at Savills India, Mr. Srinivas N, highlighted the sector's growth trajectory, attributing it to escalating domestic demand and the expanding distribution networks in Tier II and III cities. Projections for 2024 anticipate absorption exceeding 56 million sq ft, exhibiting a growth rate surpassing 13%. Simultaneously, the supply is forecasted to exceed 71 million sq ft, demonstrating a growth rate exceeding 14%.
These positive indicators underscore the sector's resilience and pivotal role in meeting the evolving demands of the manufacturing and retail landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.