The industrial and warehousing sector in India recorded 25.6 million square feet of gross leasing activity across the top five metropolitan areas in 2024, marking a modest 2% YoY growth. Despite a decline in leasing transactions in the Q4 FY25, strong absorption rates in earlier quarters maintained leasing stability. Delhi National Capital Region (NCR) emerged as the leading market for demand, capturing a 26% share, followed by Chennai with 23%. The Q4 FY25 saw about 5.5 million square feet of demand, with Pune and Bengaluru accounting for over half of it. Third-party logistics (3PL) players were the largest contributors to demand, holding a 33% share, while sectors like Engineering and Electronics also showed increased activity.
New supply in the industrial and warehousing space surged by 22% YoY, totalling over 28 million square feet in 2024, with nearly 10 million square feet added in Delhi NCR alone. This increase in supply reflects developers' confidence and a positive outlook for the future. Rental prices in key micro-markets grew by 5-10%, and vacancy rates remained stable at 13-14%. Large leasing deals of 2,00,000 square feet or more made up 40% of total demand., with 3PL companies and the engineering sector dominating these transactions. Delhi NCR saw the highest uptake of large deals, reaffirming its position as the top destination for industrial and warehousing demand in 2024.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.