Leasing of industrial and warehousing house rose 11 per cent year-on-year to 7.2 million sq. toes throughout the January-March interval throughout 5 main cities on increased demand from third-party logistics and e-commerce corporations, based on Colliers India.
Real property guide Colliers tracks the demand and provide of premium industrial and warehousing areas, that are primarily being developed in the adjoining micro-markets of 5 main cities — Delhi-NCR, Bengaluru, Mumbai, Pune and Chennai.
The January-March interval noticed the best leasing in comparison with the earlier eight quarters.
“This sustained streak in leasing was backed by 3PL (third celebration logistic) operators who continued to develop throughout giant markets, forming 41 per cent of complete leasing throughout the quarter. This was distantly adopted by the FMCG sector at 12 per cent,” Colliers said.
Interestingly, demand from retail and FMCG sectors saw a three-fold rise YoY (year-on-year), as they expanded their footprints in larger markets such as Delhi-NCR and Mumbai.
As per the data, the leasing of warehousing space in Delhi-NCR rose 22 per cent to 2.1 million square feet in January-March, from 1.7 million square feet in the same period last year.
However, the demand declined in Bengaluru and Pune.
Leasing of industrial and warehousing space in Bengaluru fell 18 per cent to 0.7 million square feet from 0.9 million square feet.
In Pune, the leasing fell 15 per cent to 1.6 million square feet in January-March from 1.8 million square feet in the year-ago period.
As per the report, Colliers said that in the Mumbai region Bhiwandi (Mankoli, Vadape, Padgha, Vashere) is a major hub for industrial and warehousing parks.
In Delhi-NCR, Sonipat and NH-48 (Gurugram-Binola, Pataudi Road, Jamalpur- Panchgaon Road, Bilaspur-Tauru Road, Dharuhera) are major micro-markets.
Around Chennai, Oragadam and NH-16 (Chennai Kolkata Highway — Gummidipoondi, Sricity, Redhills, Poochiathipedu, Periyapalayam and Vishnuvakkam) house warehousing parks.
In Bengaluru, Hoskote-Narsapura and Anekal are major hubs, while Chakan and Talegaon are major areas near Pune.
Unlike demand, Colliers pointed out that new supply across five major cities declined 8 per cent YoY at 5.8 million square feet, as developers remained watchful of the evolving demand scenario.
“Higher raw material prices and increased logistics costs also impacted new project completions across major markets. Over the next few quarters, developers will continue to remain cautious and are likely to bring in supply to meet market demand, keeping market fundamentals intact,” the guide mentioned.
Owing to restricted obtainable provide and strong demand, emptiness ranges throughout these 5 cities dropped by 170 foundation factors YoY throughout January-March 2023 to eight.1 per cent.
Majority of the markets, besides Delhi-NCR, noticed single digit emptiness ranges, backed by regular demand from 3PL, FMCG and engineering firms.
“With demand being upbeat amidst restricted provide, leases throughout high micro-markets noticed an annual rise. Chakan in Pune, and Bhiwandi in Mumbai had been some of the important thing micro markets which noticed an uptick in leases by 14 per cent and 6 per cent, respectively,” Colliers mentioned.
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