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Industrial, warehousing leasing up 35% in 2021; new supply rises 64%: Study

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Leasing of industrial and warehousing spaces across eight major cities went up by 35 per cent during 2021 to 35.1 million square feet, driven by higher demand from third-party logistics and e-commerce players, according to Savills India.


The leasing stood at 26 million square feet in the previous calendar year.





Property consultant Savills India highlighted in a report that fresh supply rose 64 per cent to 36 million square feet from 22 million square feet during the period under review.


Third-party logistics ( 3PL) players and e-commerce companies continued to drive warehousing demand, accounting for 62 per cent of the total absorption in 2021, followed by manufacturing sector at 14 per cent.


Among the major eight cities in India, Delhi-NCR led with the highest absorption in 2021 at 8.1 million square feet, followed by Pune at 6.5 million square feet.


Mumbai and Bengaluru saw absorptions of 6 million square feet and 4.6 million square feet, respectively.


Apart from eight major cities, Savills India reported that leasing of industrial and warehousing space stood at 8.6 million square feet in 11 tier II, III cities while new supply was at 8.9 million square feet.


The comparative figures of tier II and III cities were not available.


Savills noted that the rental values remained stable in 2021 across the major cities.


New projects were delivered with improved specifications and of high quality environmental, health and safety (EHS) standards.


The market witnessed 4,200-plus acres of manufacturing and warehousing land transactions across tier I and tier II cities. The industrial and logistics sector witnessed investments exceeding USD 1.5 billion in 2021.


“Continued interest in this asset class was due to its growth potential and stable returns. The market is likely to witness continued and growing interest from investors in this asset class in 2022 as well,” Savills said.


The overall industrial and warehousing space stock in tier I cities stood at 266 million square feet at the end of 2021.


Meanwhile, vacancy levels in tier I cities have increased from 8.4 per cent in 2020 to 9.4 per cent in 2021, the report said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Leasing of industrial and warehousing spaces across eight major cities went up by 35 per cent during 2021 to 35.1 million square feet, driven by higher demand from third-party logistics and e-commerce players, according to Savills India.


The leasing stood at 26 million square feet in the previous calendar year.





Property consultant Savills India highlighted in a report that fresh supply rose 64 per cent to 36 million square feet from 22 million square feet during the period under review.


Third-party logistics ( 3PL) players and e-commerce companies continued to drive warehousing demand, accounting for 62 per cent of the total absorption in 2021, followed by manufacturing sector at 14 per cent.


Among the major eight cities in India, Delhi-NCR led with the highest absorption in 2021 at 8.1 million square feet, followed by Pune at 6.5 million square feet.


Mumbai and Bengaluru saw absorptions of 6 million square feet and 4.6 million square feet, respectively.


Apart from eight major cities, Savills India reported that leasing of industrial and warehousing space stood at 8.6 million square feet in 11 tier II, III cities while new supply was at 8.9 million square feet.


The comparative figures of tier II and III cities were not available.


Savills noted that the rental values remained stable in 2021 across the major cities.


New projects were delivered with improved specifications and of high quality environmental, health and safety (EHS) standards.


The market witnessed 4,200-plus acres of manufacturing and warehousing land transactions across tier I and tier II cities. The industrial and logistics sector witnessed investments exceeding USD 1.5 billion in 2021.


“Continued interest in this asset class was due to its growth potential and stable returns. The market is likely to witness continued and growing interest from investors in this asset class in 2022 as well,” Savills said.


The overall industrial and warehousing space stock in tier I cities stood at 266 million square feet at the end of 2021.


Meanwhile, vacancy levels in tier I cities have increased from 8.4 per cent in 2020 to 9.4 per cent in 2021, the report said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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