India Industrial & Logistics Figures - H2 2023

Backed by consistent demand, the Industrial and Logistics (I&L) sector in India witnessed sustained space take-up during 2023 as leasing activity touched a historic peak of about 38.8 million sq. ft. In line with the absorption trends, the sector also witnessed an all-time high supply addition, with about 36.0 million sq. ft. of space becoming operational during the year.

Listed below are a few broad trends observed during the year and H2 2023: 

• I&L space take-up increased by about 8% y-o-y to touch 38.8 million sq. ft. during 2023.
• On a half-yearly basis, the I&L sector witnessed a marginal increase in absorption, to touch 19.4 million sq. ft. in H2 2023.
• Mumbai, Delhi-NCR and Chennai accounted for almost 60% of the annual and half-yearly leasing activity.
• Supply addition increased by 42% y-o-y to touch 36.0 million sq. ft. during the year. 
• During H2 2023, supply addition improved by 5% on a half-yearly basis to reach 18.4 million sq. ft.
• With a cumulative share of 58%, Delhi-NCR, Chennai and Kolkata drove the annual supply addition. The half-yearly development completions were dominated by Delhi-NCR, Bangalore and Chennai, with a cumulative share of about 61% in the total supply addition.
• 3PL players, followed by engineering & manufacturing companies and retail firms, continued to remain key demand drivers.

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