Industrial and Warehousing Space Leasing Reaches Record 59.1 Million Sq Ft in Top 24 Cities from January to September, According to Savills

Recent data from Savills India indicates a vigorous growth trajectory in the leasing of industrial and warehousing spaces, which rose by 7% to reach a record 59.1 million square feet during the first nine months of the year. This uptick in demand is largely attributed to thriving sectors including light manufacturing, third-party logistics (3PL), and e-commerce, showcasing a robust recovery and expansion in these critical industries. The leasing in major Tier-I cities, which encompass hubs such as Mumbai and Bengaluru, accounted for the bulk of this growth, climbing to 47.2 million square feet from 44 million square feet in the previous year.

The supply side also reflects a positive trend, with fresh industrial and warehousing supply increasing by 25% year-over-year to 68.9 million square feet. This growing supply is set against a backdrop of rising consumption patterns and a strategic realignment of supply chains, particularly in the wake of shifting market dynamics post-pandemic. The acceleration in Tier-II and III cities, where leasing rose to 11.9 million square feet, is noteworthy, highlighting an evolving landscape where smaller cities are emerging as viable alternatives for industrial and logistics operations.

Analysts anticipate that this trend of leasing growth will sustain momentum, especially with continued demand from a variety of sectors such as FMCG, retail, and e-commerce. Industry leaders, including Mukesh Choudhary from Accuspace, emphasize a structural shift in logistics strategies, as companies pivot towards high-grade regional hubs for optimal supply chain management. This indicates a potential long-term shift in industrial real estate dynamics, with greater emphasis on efficient and decentralized logistics networks.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)