According to a research by real estate firm Colliers India, leasing activity in the industrial and warehousing sector increased by around 17 percent in the first six months of 2024 compared to the previous year, reaching 13 million square feet (msf).

Chennai and Delhi –According to Colliers' India Industrial and Warehousing Market report, NCR micro-markets accounted for over 3 million square feet of leasing in H1 2024. The April-June quarter saw the highest amount of new supply in the last two years, with approximately 7.5 million square feet added (released on July 27).

Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, stated that the June quarter witnessed around 6 million square feet of industrial and warehouse demand across the top five cities, a 48 percent increase over the previous year.

"With 1.8 million square feet of lease and a 30% share, quarterly demand was mainly driven by Delhi-NCR. "The demand in the region was driven by a large uptake of industrial and warehousing space in the Farukhnagar and Sonepat micro-markets," Ganesh added.

With substantial completions in the first part of the year, 2024 is expected to see Grade A supply inflow of 20-25 msf, he added.

Third-party logistics dominates demand

Third-party logistics (3PL) players were the leading warehouse occupiers, accounting for around 36% of total demand.

While 3PL businesses continued to dominate demand, players in the engineering, FMCG, and electronics industries took up substantial territory, accounting for 12-16 percent of the market, according to the research.

Vimal Nadar, Senior Director & Head of Research at Colliers India, believes that given good macroeconomic data, the trend would likely continue in the second half.

Large acquisitions (above 200,000 square feet) accounted for around 35% of demand in the first half. On a city level, Chennai, followed by Delhi-NCR, topped the number of large-scale transactions.