India’s industrial and warehousing sector is experiencing a boom, driven by a surge in leasing activity during the first quarter (Q1) of 2024. According to a recent report by Savills India, leasing activity reached a record high, surpassing figures from the same period last year by a significant 22.7%.
This growth is fueled by sustained interest from various user groups. Third-party logistics (3PL) players and the manufacturing sector remain key drivers, while a notable increase in demand is also seen from the fast-moving consumer goods (FMCG) industry. Manufacturing warehouses played a pivotal role in this growth, along with continued strong demand from 3PL and FMCG sectors.
The report further highlights a healthy supply of new warehousing space entering the market. Over 12.9 million square feet of fresh supply was added in Q1 2024, reflecting a 4% growth compared to the previous year. Tier 1 cities, including Delhi-NCR, Bengaluru, and Kolkata, were the major contributors to this new supply. This robust growth in both demand and supply indicates a thriving industrial and warehousing sector in India.
Source: Logistics Insider