Industrial, logistics space leasing up 18% across 24 cities: Savills

Leasing of logistics and industrial spaces rose 18.5 per cent in January-March this year to 160 lakh square feet across 24 cities on better demand, according to Savills India.

The leasing of industrial and logistics spaces stood at 135 lakh square feet in the year-ago period across 24 tier I-II-III cities.

Real estate consultant Savills India data showed that Tier-I cities accounted for 79 per cent of the leasing activities, while Tier-II and Tier-III cities contributed 21 per cent.

Tier- I cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune.

Tier- II and Tier-III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.

Savills noted that manufacturing segment accounted for 30 per cent of the total absorption of industrial and logistics spaces in January-March 2025, followed by the 3PL (third-party logistics) players at 26 per cent, retail segment 12 per cent, e-commerce segment 10 per cent and FMCG & FMCD segment at 9 per cent.

Moreover, the new supply of industrial & logistics spaces rose 23 per cent to 159 lakh square feet in January-March 2025 from 129 lakh square feet in the corresponding period of the preceding year.

In the new supply, the data showed that Tier-I cities contributed a substantial 12.4 million square feet (78 per cent and Tier-II and Tier-III cities added 3.6 million sq ft (22 per cent).