About 20.2 million sq ft (msf) space was leased during the period in Mumbai, Pune, Bengaluru, Delhi National Capital Region (NCR) and Chennai.

Quarterly average space uptake has steadily increased from 5.7 msf in 2021 to 6.7 msf in 2024, indicating steady and sturdy growth in industrial and warehousing demand, a release from Colliers said.

During the first three quarters of 2024, Delhi NCR and Chennai cumulatively accounted for 53 per cent share in the overall leasing.

While third party logistics (3PL) players continued to dominate the overall demand, contributing to 35 per cent share in overall leasing, demand from engineering and fast moving consumer goods (FMCG) segments was significant. The sectors together accounted for 32 per cent of industrial and warehousing demand in 2024.

Additionally, industrial and warehousing space uptake by these segments are expected to remain upbeat with the upcoming festive season. Moreover, the rise of quick commerce players is likely to catalyse demand for bigger hub-warehouses across major urban centres, research by Colliers found.

At a micro market level, Bhiwandi in Mumbai witnessed 3.7 msf of leasing activity during the period, followed by Oragadam in Chennai and Chakan-Talegaon in Pune.

“On a quarterly basis, Q3 2024 saw about 7.3 msf of industrial and warehousing demand across the top five cities, an 18-per cent rise YoY. With 2.3 msf of leasing and about one-third share, Delhi NCR continued to drive quarterly demand. The demand in the region was led by large uptake of industrial and warehousing space in Bhaproda and Kulana micro markets. Across the top five cities, 3PL firms accounted for the bulk of quarterly demand led by Mumbai and Chennai,” Vijay Ganesh, managing director, industrial & logistics services, Colliers India, said.

“Notably, engineering firms accounted for about 26 per cent share in overall demand during the third quarter, with large take up of space in Chennai and Delhi NCR. Moreover, with increased demand for quality grade A spaces replete with sustainable and technologically advanced features, leasing momentum by such firms is likely to continue over the next few years,” he added.

"Taking cognizance of healthy demand across major cities and supportive government policies, 2024 can potentially close with record leasing activity to the tune of 25-30 msf. Improving logistics efficiencies, capacity augmentation and enhanced credibility of India as a global manufacturing hub will keep the growth momentum steady in the industrial and warehousing sector," Vimal Nadar, senior director and head of research, Colliers India, said.

During the nine months, large deals (more than 200,000 sq ft) accounted for about 40 per cent of the overall demand.

Fibre2Fashion News Desk (DS)