Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
Close to 38 million square feet of
warehousing space was leased in 2023, with a significant portion of the demand
coming from third-party logistics (3PL) operators, as well as manufacturing and
retail firms.
The shift in leasing activity indicates a possible growing trend of e-commerce
companies outsourcing their logistics and warehousing operations to 3PL
specialists, allowing them to focus on their core business activities, said the
report by Cushman & Wakefield.
An uptick in manufacturing activity and
higher capacity utilisation saw industrial leasing reach 16 msf in 2023, the
report said.
“Logistics and Industrial segment in
India has defied global uncertainties to achieve a stable growth for two years
in a row,” said Abhishek Bhutani, MD, Logistics & Industrials, Cushman
& Wakefield. “This is fuelled by a confluence of factors, including strong
economic and industry fundamentals, rapidly growing sectors like manufacturing
and 3PL, and supportive government policies like the PLI scheme. We expect this
momentum to continue in 2024, solidifying L&I as a key driver of Indian
real estate growth.”
Mumbai was the top warehousing hub in
2023, commanding a 27 per cent share of the market. Chennai followed closely with
19 per cent, while Delhi and Pune held 18 per cent and 12 per cent shares,
respectively. However, Delhi-NCR saw a
noticeable decline in activity, likely due to fewer major space transactions in
the latter half of the year, the report said. “This was effectively offset
by the continuous expansion of Chennai and Pune, ensuring consistent overall
activity across India.”
Overall leasing activity in Chennai
more than doubled last year at 10.37 msf, of which warehouse
leasing accounted for 6.97 msf. In the sub-market of Oragadam, gross leasing
reached 2.14 msf, a fivefold growth compared to 2022. Throughout the year,
demand was predominantly driven by the 3PL and logistics sector, contributing
64 per cent to the yearly gross leasing activity, followed by the engineering
and manufacturing sector with a 31 per cent share.
In 2023, manufacturing tenants leased
3.8 msf in Chennai, with Oragadam and Sriperumbudur dominating. The electronics
and automobile sectors held the top spots in the city with 28 per cent and 24
per cent shares, respectively.
