Leasing activity in the industrial and logistics sector rose 18.5% year over year in the January–March quarter of fiscal 2024–25, reaching 160 lakh square feet across 24 cities, according to real estate consultancy Savills India, as reported by The Economic Times.
In the same quarter last year, leasing stood at 135 lakh square feet. The growth was attributed to improved demand across both established and emerging markets.
According to Savills India, Tier-I cities dominated leasing activity, accounting for 79% of the total, while Tier-II and Tier-III cities contributed the remaining 21%. Tier-I cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune.
Tier-II and Tier-III markets showing activity included Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum, and Anantapur.
In terms of sector-wise demand, the manufacturing segment led with a 30% share of total absorption during the quarter. This was followed by third-party logistics (3PL) players at 26%, retail at 12%, e-commerce at 10%, and the FMCG and FMCD segment at 9%.
New supply in the industrial and logistics space also recorded significant growth, rising 23% year-over-year to 159 lakh square feet in Q4 FY25, up from 129 lakh square feet in the corresponding period of the previous fiscal year.
Savills India’s data showed that of the total new supply, Tier-I cities contributed 12.4 million square feet, representing 78%, while Tier-II and Tier-III cities added 3.6 million square feet, or 22%.