Industrial & logistics segment records 40% rise in leasing in Q3: Report

“According to the report, the Industrial and Logistics leasing recorded a 40% Q-o-Q rise in Q3 and 18% Y-o-Y growth. Among the cities , Delhi-NCR and Mumbai led absorption, together accounting for 57% share,” the report said.

“For the 9-month period, 22 mn sq. ft. leasing activity was witnessed which was almost stable on a Y-o-Y basis. Total supply addition of 13 mn sq. ft. was recorded during same period in 2022,” it added.

Total supply addition of 13 mn sq. ft. was recorded during same period in 2022, the report said. 

According to the report, holistic policy initiatives such as PM GatiShakti, National Logistics Policy, etc. are anticipated to transform the sector and bring it at par with global standards. 

“Leasing expected to remain range-bound at 28-32 mn sq. ft. in 2022, supply addition to pick up pace in Q4 to total 18 – 20 million sq. ft. in the entire year,” the report said.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said “Nearly 18% Y-o-Y growth during 9M2022 in leasing activity was observed in the I&L sector on the back of festive season uplift and 3PL players. Owing to the high growth potential, we expect leasing in this sector to remain range-bound.” 

Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said “While continued tightening in domestic financial conditions and recessionary forces in the US and the EU have led most agencies to cut their growth forecasts for key global economies, India has remained resilient in most sectors. Strong leasing momentum across Hyderabad, Delhi-NCR, Mumbai and Bangalore indicates regained occupier confidence and expansion potential.”