Industrial & Warehousing records in excess of 44 mn sq. ft space absorption in 2021

Industrial and warehousing space absorption stood at 44 mn sq. ft in 2021 to include 35.1 mn sq. ft from Tier I cities and 8.6 mn sq. ft from Tier II & III cities. Inspite of Covid restrictions and lockdowns impacting construction activities, India witnessed a fresh supply of 45 mn sq. ft. in 2021 where 36 mn sq. ft was from Tier I cities and 8.9 mn sq. ft from Tier II & III cities, as per data released by International real estate advisory firm Savills India.
Similar to 2020, 3PL and e-commerce sectors continued to drive warehousing demand accounting 62% of the total absorption in 2021, followed by manufacturing sector at 14%. Among the major cities in India, Delhi NCR led with the highest absorption in 2021 at 18% followed by Pune at 15%. Mumbai and Bangalore saw absorptions at 14% and 11% respectively, while tier II & tier III cities accounted for 20%.