Industrial and warehousing demand steady in H12023

In H 1 2023, industrial and warehousing demand in the top five cities remained steady, with 11 million square feet of leases, reflecting last year's figures, with Delhi NCR taking the lead in demand, followed by Mumbai, Colliers India. The report said the Delhi-NCR region held a significant 25.0% share, closely trailing Mumbai at 24.6%, while other cities experienced minimal single-digit shifts in demand. While 3 PL players are likely to dominate demand, we expect strong steady momentum in leasing from other sectors, said Vijay Ganesh, Managing Director, Industrial Logistics Services, Colliers India. The Indian manufacturing and warehousing sector is expanding in a challenging environment, fueled by increased capital investments, manufacturing output, and favorable government policies. The robust leasing activity during H 1 2023 was chiefly driven by 3 PL operators, which comprised 37% of the total leasing volume, followed by FMCG and Engineering firms, each contributing 12% and 11% shares. The surge in E-commerce demand in the past few quarters marked a notable surge of 68% year-on-year, rebounding after a period of relative slowdown in the past few quarters. India's remarkable growth in the retail and manufacturing industries has resulted in a substantial surge in the market for goods and services. This burgeoning industry has not only drew the attention of NRIs, HNIs, and UHNIs seeking exceptional returns on investment but also paved the way for the creation of essential logistics infrastructure. The creation of industrial corridors and the expansion of e-commerce businesses have further propelled the growth of this industry, said Abhijit Verma, managing director of Avinya Industrial Logistics Parks.