In a report released on Monday by real estate consulting firm CBRE South Asia, leasing among industrial and logistics businesses increased by 40% quarter over quarter and 18% year over year during the July-September quarter.
“According to the report, industrial and logistics leasing increased by 40% year on year in Q3 and by 18% year on year.” “Among the cities, Delhi-NCR and Mumbai led absorption, accounting for 57% of the total,” according to the report.
“For the nine-month period, 22 million square feet of leasing activity was observed, which was nearly stable on a year-over-year basis.” During the same period in 2022, a total supply addition of 13 million square feet was recorded.
According to the report, a total supply addition of 13 million square feet was recorded during the same period in 2022. Also, comprehensive policy initiatives such as PM GatiShakti and the National Logistics Policy, among others, are expected to transform the sector and bring it up to global standards. Leasing is expected to remain range-bound at 28–32 million square feet in 2022, with supply additions picking up in Q4 to total 18–20 million square feet for the year.
“Nearly 18% Y-o-Y growth in leasing activity was observed in the I&L sector during 9M2022 on the back of the festive season uplift and 3PL players,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, the Middle East & Africa, CBRE. “We expect leasing in this sector to remain range-bound due to its high growth potential.”
“While continued tightening in domestic financial conditions and recessionary forces in the US and EU have led most agencies to cut their growth forecasts for key global economies, India has remained resilient in most sectors,” said Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India. “Strong leasing momentum in Hyderabad, Delhi-NCR, Mumbai, and Bangalore indicates resurrected occupier confidence and potential for expansion.”
