New Delhi: Industrial and warehousing space leasing in five cities grew 7 per cent to 10.8 million sq ft in the January-June period on better demand. Colliers India, The gross leasing or absorption was 10.1 million sq ft in the first six months of last year across five major cities namely Delhi-NCR, Mumbai, Chennai, Bengaluru and Pune.
Leasing increased in Mumbai and Pune but fell in Bengaluru and Chennai. The absorption of industrial and warehousing space in Delhi-NCR remained flat at 3 million sq ft.
“About 55 per cent of the total absorption was led by third-party logistics players, followed by engineering and automobile sectors with a share of 12 per cent,” Colliers India said in a statement.
According to the data, a decline of 29 percent was seen in Bengaluru leasing activities From 1.4 million sq ft during January-June 2022 to 2 million sq ft in the corresponding period of the previous year.
Leasing in Chennai fell 16 per cent to 1.7 million sq ft from 2 million sq ft.
However, Mumbai saw a three-fold jump in leasing from 0.7 million sq ft to 2.1 million sq ft.
The absorption of spaces in Pune grew 7 per cent to 2.6 million sq ft in January-June 2022 from 2.4 million sq ft in the year-ago period.
Delhi-NCR accounted for 28 per cent of total leasing in the first half of this year, followed by Pune with 24 per cent of demand.
Shyam Arumugam, Managing Director, Industrial & Logistics Services, Colliers India, said, “Demand dominated by third party logistics players in the first half of this year and this trend is expected to continue over the next few quarters as well.
He said inquiries for warehousing space in Tier II cities have increased as major players are strengthening their last-mile delivery supply chain for customers.
On supplies, Colliers India said it fell 24 per cent to 11.8 million sq ft in January-June 2022 from 15.6 million sq ft in the year-ago period.
In Bengaluru, the supply grew 73 percent from 7 lakh sq ft to 1.2 million sq ft.
There was an 11 per cent increase in supply in Chennai, from 2 million sq ft to 2.2 million sq ft.
Supply in Pune grew 42 percent from 1.1 million sq ft to 1.5 million sq ft. However, the supply in Delhi-NCR declined by 47 per cent to 5.1 million sq ft from 9.5 million sq ft.
Mumbai saw a 21 per cent drop in supply in January-June 2022 from 2.3 million sq ft in the year-ago period.