India’s warehousing sector to reach 516 mn sq. ft. by 2026: JLL

The warehousing and industrial sector of India is expected to expand up to 516 million sq. ft by 2026, states research firm, JLL’s H1 2023 India: Logistics and Industrial State of the Nation study. Delhi NCR, Mumbai, and Bengaluru are the major contributors to this expansion, while the top three cities in terms of demand are Mumbai, Pune, and Delhi NCR. For net absorption or new leases, the top eight cities in the country consisted of 15 million sq. ft., and third-party logistics operators made up for 43% of the demand in their leasing market. That marked a notable increase from the previous year where it was for 35% in H1 2022. Meanwhile, the lease share of the FMCG and retail industry went down to 15% in the current year from 23% in 2022. A similar decrease was also seen in India’s gross absorption, including renewals and churnings, which fell to 20 million sq. ft. in 2023 from 23 million sq. ft. last year.