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Industrial, logistics realty records 40% rise in leasing July-September quarter

Leasing among industrial and logistics businesses recorded a 40 per cent quarter-on-quarter growth during the July-September quarter and 18 per cent on a yearly basis.
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Among the cities, Delhi NCR and Mumbai led absorption, together accounting for 57 per cent share.

Leasing among industrial and logistics businesses recorded a 40 per cent quarter-on-quarter growth during the July-September quarter and 18 per cent on a yearly basis, according to a report by real estate consulting firm CBRE South Asia.

The report titled ‘India Market Monitor – Q3 2022’ highlighted the growth, trends, and dynamics across all segments of the real estate sector in India.

Among the cities, Delhi NCR and Mumbai led absorption, together accounting for 57 per cent share.

For the nine-month period this year, 22 million leasing activities took place, which was almost stable on a Y-o-Y basis. Key sectors that dominated leasing included players from the third-party logistics (50 per cent), engineering and manufacturing (17 per cent), retail (9 per cent), e-commerce (7 per cent) and FMCG (4 per cent) sectors.Total supply addition of 13 mn sq. ft. was recorded during same period in 2022, the report said.

According to the report, holistic policy initiatives such as PM GatiShakti, and National Logistics Policy, among others, are anticipated to transform the sector and bring it to par with global standards.

Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, said: “Nearly 18 per cent Y-o-Y growth during 9M2022 in leasing activity was observed in the I&L sector on the back of festive season uplift and third-party logistics players. Owing to the high growth potential, we expect leasing in this sector to remain range-bound.”

According to Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India: “While continued tightening in domestic financial conditions and recessionary forces in the US and the EU have led most agencies to cut their growth forecasts for key global economies, India has remained resilient in most sectors.

Chandnani added strong leasing momentum across Hyderabad, Delhi NCR, Mumbai, and Bangalore is indicating regained occupier confidence and expansion potential in the sector.

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