Leasing of industrial and warehousing spaces across five cities rose 7 percent to 10.8 million square feet in the January-June period on better demand, according to Colliers India.
The gross leasing or absorption stood at 10.1 million square feet in the first six months of last year in five major cities namely Delhi-NCR, Mumbai, Chennai, Bengaluru, and Pune.
Leasing increased in Mumbai and Pune, but fell in Bengaluru and Chennai. Absorption of industrial and warehousing space remained flat at 3 million square feet in Delhi-NCR.
"About 55 percent of the gross absorption was led by third-party logistics players, followed by the engineering and automobile sectors with a share of 12 percent each," Colliers India said in a statement.
As per the data, Bengaluru saw a 29 percent decline in leasing activities to 1.4 million square feet during January-June 2022 from 2 million square feet in the corresponding period of the previous year.
Leasing in Chennai fell 16 percent to 1.7 million square feet from 2 million square feet.
However, Mumbai saw a three-fold jump in leasing to 2.1 million square feet from 0.7 million square feet.
Absorption of spaces in Pune grew 7 percent to 2.6 million square feet in January-June 2022 from 2.4 million square feet in the year-ago period.
Out of the total leasing in the first half of this year, Delhi-NCR accounted for a maximum of 28 percent share, followed by Pune with a 24 percent share in demand.
"Third-Party Logistics players continue to dominate demand in the first half of this year and the trend is expected to continue in the next few quarters as well," said Shy am Arumugam, Managing Director, Industrial and Logistics Services, Colliers India.
He said inquiries for warehousing spaces have increased in Tier II cities as key players are strengthening their last-mile delivery supply chain to be proximate to customers.
On supply, Colliers India said that it fell 24 percent to 11.8 million square feet in January-June 2022 from 15.6 million square feet in the year-ago period,
In Bengaluru, supply rose by 73 percent to 1.2 million square feet from 0.7 million square feet.
Chennai saw an 11 percent rise in supply. To 2.2 million square feet from 2 million square feet.
Supply in Pune went up 42 percent to 1.5 million square feet from 1.1 million square feet. However, supply in Delhi-NCR declined 47 percent to 5.1 million square foot from 9.5 million square feet,
Mumbai witnessed a 21 percent fall in supply to 1.8 million square feet in January-June 2022 from 2.3 million square feet in the year-ago period, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to "remain" committed to keeping you informed and updated with credible news, authoritative views, and incisive commentary on topical issues of relevance.
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