Leasing of Industrial and warehousing spaces during April–June fell 12% year-on-year to 40-lakh square feet across five major cities mainly due to lower demand in the 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% from the previous quarter.
As per the data, leasing of industrial and warehousing space in Pune region rose 15% to 1 million square feet during April–June period. Mumbai also saw a 12% increase in demand to 0.9 million square feet in the second quarter of this calendar year.
The leasing in Bengaluru went up 17% to 0.7 million square feet during April–June However, the demand remained subdued in Chennai and the National Capital Region.
The absorption of industrial and warehousing space in the NCR fell sharply by 49% to 0.7 million square feet, while the demand dropped 28% in Chennai to 0.7 million square feet during the quarter ended June.
Third-party logistics players were major drivers of demand with a share of 29% in total leasing, while engineering and e-commerce firms contributed 14% each in the overall leasing across five cities.
In terms of new supply, it declined 11% year-on-year to 4.9 million square feet during the second quarter of 2023.
The NCR witnessed the highest new supply at 2.6 million square feet, followed by 0.6 million square feet each in Bengaluru and Pune.
The fresh supply in Chennai and Mumbai stood at 0.7 million square feet and 0.4 million square feet, respectively.
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