Pune, Mumbai dominate warehousing leasing demand

With 17 mn sq ft of gross leasing in the first three quarters of 2023, industrial & warehousing demand across the top five cities is almost comparable to the corresponding period of 2022.

Pune led the demand during this nine-month period with 24% share, closely followed by Mumbai at 23%, both edging ahead of the usual front-runner, Delhi NCR.

According to the report from Colliers India, despite a relatively slower growth during H1 2023, leasing activity picked up in Q3 2023, registering a 55 percent QoQ growth.

Overall, Bhiwandi remained the most active micro-market in Mumbai, while Chakan-Talegaon continued to be the preferred market for industrial occupiers in Pune.

3PLs continued to be the top warehousing space occupiers, contributing to about 40% share in total warehousing demand to date. 3PL space uptake was driven by healthy activity in Mumbai and Chennai mainly.

The economic activity of Chennai has always been driven by a diverse range of sectors, starting from automobile and electronics hardware to textiles, media industry and software services.

Vijay Ganesh, Colliers India: “In addition to demand driven by 3PL and retail segments, there is a surge in demand from manufacturing players led by FMCG companies, electronics, Auto & Auto ancillary, EV and Semiconductor companies.”

Vimal Nadar, Colliers India: “Despite global economic headwinds, India’s industrial & warehousing sector remains resilient, closely following the trendline of 2022.”