India's industrial warehousing demand surges with growing third-party logistics
According to the most recent Colliers research, demand for industrial warehousing in India has increased by 11% year on year to 7.2 million square feet across five cities. This expansion is mostly due to increased demand from third-party logistics operators, which continued to expand in large markets and accounted for 41% of total leasing during the quarter. The FCG sector was close following, accounting for 12% of total leasing.
The retail and FMCG sectors also saw a three-fold rise YoY as they expanded into larger markets such as Delhi-NCR and Mumbai. This rise in demand for industrial warehouse space corresponds to an increase in private consumption in the domestic economy.
Furthermore, in the previous eight quarters, the warehousing segment had the highest leasing in the country.
During the first quarter, demand was driven by Delhi-NCR, which accounted for 29% of total leasing, followed by Mumbai, which accounted for 25%. The financial capital had a 37% yearly growth in leasing, led by logistics businesses.