'Gross leasing of industrial-warehousing space down 12% across 5 cities'

Leasing of Industrial & warehousing spaces during April-June fell 12% year-on-year to 40 lakh square feet area across five major cities mainly due to lower demand

Leasing of Industrial & warehousing spaces during April-June fell 12 per cent year-on-year to 40 lakh square feet area across five major cities mainly due to lower demand in Delhi-NCR and Chennai, according to Colliers.

Real estate consultant Colliers India released its India industrial and warehousing market snapshot for the April-June quarter of this calendar year, showing the gross leasing in April-June across five cities fell 44 pc from the previous quarter.

As per the data, leasing of industrial and warehousing space in Pune region rose 15 per cent to 10 lakh (1 million) square feet during April-June period.

Mumbai also saw a 12 per cent increase in demand to 9 lakh (0.9 million) square feet in the second quarter of this calendar year.

The leasing in Bengaluru went up 17 pc to 7 lakh (0.7 million) square feet during April-June.

However, the demand remained subdued in Chennai and Delhi-NCR.

The absorption of industrial and warehousing space in Delhi-NCR fell sharply by 49 per cent to 7 lakh (0.7 million) square feet, while the demand dropped 28 per cent in Chennai to 7 lakh (0.7 million) square feet during the quarter ended June.

Third party logistics (3PL) players were major drivers of demand with a share of 29 per cent in total leasing, while engineering and e-commerce firms contributed 14 per cent each in the overall leasing across five cities.

In terms of new supply, it declined 11 per cent year-on-year to 49 lakh (4.9 million) square feet during the second quarter of 2023.

Delhi-NCR witnessed highest new supply at 26 lakh (2.6 million) square feet, followed by 6 lakh (0.6 million) square feet each in Bengaluru and Pune.

The fresh supply in Chennai and Mumbai stood at 7 lakh (0.7 million) square feet and 4 lakh (0.4 million) square feet, respectively.