India's Logistics and Industrial Leasing Volume Set to Surpass 50 MSF in 2024
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New Delhi, Dec 24 (NationPress) The annual leasing volume in the logistics and industrial real estate sector in India is projected to exceed 50 million square feet (MSF) for the third consecutive year, and this robust trend is anticipated to persist into the upcoming year, as per a report released on Tuesday.
As of October, the leasing volume had already surpassed 41 MSF across the top eight real estate markets, according to a report by Cushman & Wakefield.
Since the introduction of the production-linked incentive (PLI) scheme by the government in 2020, there has been significant growth in industrial leasing.
Furthermore, the rapid rise of retail and e-commerce has stimulated considerable activity in the warehousing sector as well.
“For 2025, we predict that the new-normal level of demand will be sustained due to the broadening consumption base in India, coupled with strong industrial activity observed in recent years. India also benefits from the China+1 diversification strategy adopted by global manufacturing companies,” the report stated.
The growth in the engineering and manufacturing sector, the strengthening of third-party logistics (3PL) providers, and the retail sector are the primary catalysts for demand in the logistics and industrial space recently, and these factors are expected to remain critical drivers for 2025 as well.
Cities such as Pune, Chennai, and Bengaluru have demonstrated healthy leasing volumes in recent years, while other cities show a positive forecast, the report noted.
“We expect the demand for logistics and industrial spaces to stay robust in 2025, backed by India’s growing retail consumption base and ongoing manufacturing expansion,” stated Abhishek Bhutani, Managing Director of Logistics and Industrial at Cushman & Wakefield.
Additionally, “we anticipate 25 million square feet of Grade-A warehousing supply to enter the market within the next 2-3 years, primarily concentrated in West and South India, with significant projects in Mumbai, Pune, Chennai, and Bengaluru,” he added.
