Want to know about the highlights from Savills India?
Let’s explore the trends and developments in India’s industrial and warehousing sectors in the first half of 2024!
1. Absorption Increase: Industrial and warehousing absorption rose to 27.3M sq ft in H1 2024, up 21.9% from H1 2023 (22.4M sq ft).
2. Sectoral Demand: 3PL led with 33%, followed by manufacturing at 22%, and FMCG/FMCD at 17%.
3. Regional Distribution: Tier I cities dominated with 78%; Tier II and III cities made up 22%.
4. Supply Additions: 28.2M sq ft added, with 77% in Tier I and 23% in Tier II/III cities.
5. ESG Focus: Despite Grade-A space dip, ESG standards drive demand; Grade-A to be 60%+ by end 2024.
6. Sectoral Changes: 3PL absorption share dropped to 33% from 44%; FMCG/FMCD rose to 17% from 6%.
7. FMCG/FMCD and E-commerce Growth: Demand for warehousing is rising across Tier I, II, and III cities and rural areas.E-commerce is growing in metropolitan regions such as Patna, Ranchi, and Lucknow.
8. Manufacturing Sector: Manufacturing's absorption share climbed from 16% in 2022 to 22% in H1 2024, aided by initiatives such as PLI.
9. Sectoral Distribution: Retail accounted for 7% of absorption, with cold storage, chemical storage, FTWZs, ICDs, and urban warehousing contributing 15%.
10. City-wise Breakdown: Delhi NCR ranked first with 20% absorption, followed by Pune (12%) and Bangalore (11%). Tier II and III cities collectively accounted for 22% of absorption.
11. Supply Contribution: Delhi NCR led supply at 17%, followed by Chennai (13%), Bangalore (12%), and Pune and Mumbai (11% for each).
Source: IBEF
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