India Industrial and Logistics Figures H1 2024

Leasing activity in India’s industrial and logistics (I&L) sector moderated in H1 2024 on an annualised basis. However, a resurgence in space absorption is anticipated for the second half of the year, underpinned by a surge in fresh enquiries, the introduction of high-quality supply, and the finalisation of pending transactions in sectors such as 3PLs, retail and FMCG.

Listed below are a few broad trends observed in H1 2024:

• I&L leasing activity stood at 16.6 million sq. ft., a decrease of about 14% on a Y-o-Y basis.
• Bengaluru, Delhi-NCR, and Kolkata dominated the half-yearly leasing activity; together, these cities accounted for almost 60% of the overall space take-up.
• Third-party logistics players continued to drive the I&L space absorption with a share of about 40%, followed by engineering and manufacturing firms (18%), FMCG companies (10%) and e-commerce players (9%).
• Supply addition decreased by about 12% Y-o-Y to reach 15.5 million sq. ft. during H1 2024.
• Chennai, followed by Bengaluru and Mumbai, led the supply addition, cumulatively accounting for more than half of the project completions.

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