Leasing momentum in the I&L house in 2023 is anticipated to proceed to be robust, with a requirement of 32-35 mn sqft and would develop 1-5 per cent on an annual foundation.
Domestic corporations had a 61 per cent share in leasing, whereas American companies held a share of about 17 per cent
The industrial & logistics (I&L) sector leasing in India grew 26 per cent year-on-year (YoY) to 8 million sq. ft in January-March 2023. Supply throughout this era elevated 28 per cent YoY to 7.6 million sqft, in accordance to a report by actual property consultancy agency CBRE South Asia.
“During the January-March 2023 interval, Delhi-NCR drove absorption exercise, with the leasing of 1.7 mn sqft, adopted by Hyderabad at 1.5 mn sqft and Ahmedabad at 1.2 million sqft. The leasing share of those three cities in complete leasing stood at 54 per cent. The collective share of Chennai, Kolkata and Hyderabad in provide addition stood at 59 per cent in January-March 2023,” said the report, titled ‘India Market Monitor Q1 2023′.
It added that 3PL (third-party logistics) had a majority share in leasing at 43 per cent, while e-commerce firms’ share improved and stood at 15 per cent during the January-March 2023 period. Retail and engineering & manufacturing firms accounted for a share of 11 per cent each in leasing, followed by auto and ancillary corporates at 8 per cent. Overall, domestic firms had a 61 per cent share in leasing, while American corporations held a share of about 17 per cent.
Anshuman Magazine, chairman & CEO (India, South-East Asia, Middle East & Africa) of CBRE, said, “We anticipate that leasing momentum in the I&L space in 2023 will continue to be strong, with a demand of 32-35 mn sqft and would grow 1-5 per cent on an annual basis. Despite macroeconomic uncertainties, the I&L sector saw robust growth in the first quarter of 2023.”
He expects provide to develop by 15-24 per cent Y-o-Y to attain 24-26 million sq. ft, following the discharge of pent-up provide. “We additionally foresee elevated demand from FMCG, retail, and electronics & electricals sectors, whereas 3PL and engineering & manufacturing corporations would proceed to be key drivers of the leasing momentum this 12 months.”
Ram Chandnani, managing director (advisory & transactions services) of CBRE India, said, “We anticipate that rising occupier demand for improved warehousing spaces and storage efficiency would translate into a growing need for superior warehousing facilities. Moreover, occupiers’ desire to achieve operational efficiency and reduce costs in a multi-user facility is projected to boost demand for large-sized spaces (more than 1 lakh square feet).”
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