New Delhi, Jan 21 (IANS) The year 2024 saw over 28 million square feet of new supply, highest in the recent years, indicating improved developer confidence and an optimistic outlook for this year, as large-sized deals drove 40 per cent of industrial and warehousing demand last year, according to a report on Tuesday.
With 25.6 million square feet of gross leasing in 2024, industrial and warehousing demand across the top five cities remained healthy, witnessing a marginal 2 per cent YoY growth, said the Colliers report.
Delhi-NCR led the demand with 26 per cent share, closely followed by Chennai at 23 per cent share.
On a quarterly basis, Q4 2024 saw about 5.5 million square feet of industrial and warehousing demand across the top five cities. Pune, closely followed by Bengaluru, cumulatively accounted for over half of the quarterly demand.
While third-party logistics (3PL) players drove overall demand during the year, and accounted for 33 per cent share in overall leasing, demand from Engineering and Electronics segments gained traction.
“Concurrently, space uptake by occupiers from other demand segments continued to pick pace. Engineering and Electronics segments cumulatively accounted for almost one-third of the annual warehousing space uptake in 2024, significantly up from their combined one-fourth demand share in 2023,” said says Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.
Moreover, with the rise of Q-commerce, demand from segments like FMCG and Retail are seeing an uptick and are poised for long-term growth across major urban centres, Ganesh added.
Large deals (200,000 sq ft and above) accounted for about 40 per cent of the overall demand.
With 35 per cent share, 3PL players continued to account for majority of the large ticket transactions.
Interestingly, in the electronics segment, the quantum of large deals rose significantly, 4.5X in 2024 as compared to 2023.
At the city level, space uptake from large-sized deals was highest in Delhi NCR during 2024, said the report.