The cumulative Grade A and B supply in India’s Warehousing and Industrial sector is expected to reach 516 million. sq ft by 2026 , finds JLL’s H12023 India: Logistics and Industrial State of the nation report. The report states that India’s total supply of leasing stock reached 344 million sq ft in H12023. Around 15 million sq ft of new stock were added in H1 2023 with Delhi NCR, Mumbai and Bengaluru gaining maximum share of the supply.
H1 2023 net absorption or new leases stood at 15 million sq ft in top eight cities. However, India’s gross absorption, that would include renewals and churnings across top eight cities in H1 2023 marginally declined to 20 million sq ft from 23 million sq ft in H1 2022. Mumbai. Pune and Delhi NCR were top three locations in terms of demand in H1 2023.
With 43% share in the demand, third-party logistical players dominated the leasing and industrial sector across top eight cities ,which is a considerable growth, compared to 35% in H1 2022. FMCG and retail segment accounted for 15% of the leasing pie in H12023 against 23% during the same period last year. Auto & Engineering segments cornered 23% share of the leasing, thus displaying strong headwinds for light manufacturing leasing.
Yogesh Shevade, Head of Logistics & Industrial, India, JLL said, “The logistics and industrial sector has shown resilience post pandemic. A muted demand is privy to the global economic turmoil in recent quarters, We expect the logistics and industrial leasing to pick pace in the second half of this year and upward bias on rentals in select markets in the near future.”
The leasing in industrial sector witnessed year on year rental growth of 6.5% in H1 2023, touching an India average of INR 23 per sq ft per month for Grade A spaces. Pune, Chennai, and Bengaluru led the average rental growth in Grade A leasing stocks.
Also Read: Industrial & Warehousing demand in India stable at 11 mn sq ft in H1 2023
