According to CBRE, the leasing activity is expected to sustain its momentum in the Jul-Dec’23 period, which is expected to be partly driven by festive season sales observed across the country.
Delhi-NCR, Mumbai, and Chennai led the leasing activity during the Jan-Jun’23 period, accounting for a 60% share in the total leasing. All cities, barring Bangalore, demonstrated an uptick in I&L leasing compared to the corresponding period last year.
“The second half of the year foresees a consistent influx of leasing activities, paving the way for an estimated 32-36 million sq. ft. uptake of Industrial and Logistics (I&L) space in 2023. This growth trajectory will be predominantly propelled by the Third-Party Logistics (3PL) sector as they continue to implement a ‘multipolar’ supply chain strategy,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. A significant surge in supply was recorded, marking a 78% Y-o-Y increase, and stood at 17.7 mn. sq. ft. during Jan-Jun ‘23. This boost was primarily due to the completion of pent-up supply in a few cities. The overall supply was led by Chennai, Kolkata, and Mumbai, which collectively accounted for over half of the total project completions.
