Industrial & warehousing demand rises 11% YoY: Colliers

Leasing of industrial and warehousing space rose 11 percent year-on-year (YoY) to 7.2 million square feet (msf) during the January-March period across five major cities, driven by higher demand from third-party logistics and e-commerce firms, according to Colliers India. The report stated that Delhi-NCR continued to lead in demand with a 29 percent share, followed by Mumbai.
Third-party logistics (3PL) players accounted for 41 percent of the demand, followed by the fast-moving consumer goods (FMCG) sector at 12 percent. “The demand from the retail and FMCG sectors saw a three-fold rise YoY as they expanded their presence in larger markets such as Delhi-NCR and Mumbai. This increase in industrial warehousing space uptake aligns well with the growth in private consumption in the domestic economy,” the report added. Mumbai experienced a 37 percent YoY increase in leasing, primarily driven by 3PL operators who continued to expand in the city despite weaker economic and business sentiment.