According to an India commercial real estate business, the demand from third-party logistics and e-commerce companies drove the biggest industrial and warehousing space leasing in Delhi-NCR and surrounding areas during 2022 at 7.3 million square feet. In Delhi-NCR, leasing increased by 6% to 7.3 million square feet in 2022 from 6.9 million square feet the year before.
According to the real estate company’s most recent report, industrial and logistical space leasing increased by 8% to 31.6 million square feet in 2022 from 29.4 million square feet in 2021 across eight major cities.
“The goal to expand supply chain among global and domestic enterprises pushed the leasing activity in 2022,” the real estate company CEO stated in response to the report. He added that continual demand from 3PL (third-party logistics), engineering & manufacturing, and retail sectors are expected to sustain leasing activity range-bound in 2023.
According to the real estate company CEO, on the supply front, project completions are anticipated to surpass 2022 levels and be consistent with space take-up throughout 2023. According to the data, leasing in Mumbai increased 36% to 6.1 million square feet in 2022 from 4.5 million square feet the year before.
In Bengaluru, the area leased for industrial and logistical purposes decreased by 18%, from 6.4 million square feet to 5.2 million square feet.
Leasing in Chennai decreased slightly to 4 million square feet.
In Hyderabad, it is leasing increased by 16%, from 3.2 million to 3.7 million square feet.
From 1.8 million square feet, lease activity in Pune decreased by 64% to 0.6 million square feet.
The leasing in Kolkata increased significantly from 1.9 million square feet to 3.8 million square feet.
In Ahmedabad, industrial and logistical space leasing increased by 33% in 2022, from 0.6 million square feet to 0.8 million square feet.
According to the real estate company CEO, leasing generally increased across eight cities despite global headwinds, a decrease in e-commerce demand, and the vanishing of the post-pandemic necessity to keep additional inventories.
After the peak of 32 million square feet in 2019, this is the second-highest leasing activity ever observed in the industrial and logistics sectors.
In 2022, the total supply reached 20.9 million square feet.
The need to strengthen distribution capacities among interconnected stakeholders along the supply chain (wholesalers, retailers, and e-commerce firms) drove a significant portion of the annual space take-up, which was accounted for by the 3PL players.
In India, 3PL players have leased more than 60 million square feet over the past five years, and domestic occupiers occupied most of this space.
Engineering and manufacturing companies increased their proportion of overall leasing from 10% in 2021 to around 16% in 2022.
