India Industrial & Logistics Figures H1 2022

The Indian Industrial and Logistics (I&L) sector saw various challenges in H1 2022 including the ongoing COVID-19 concerns, global events such as increasing costs due to inflation, the war in Ukraine and supply chain disruptions. While this had a visible impact on the supply-demand trends in the first half of the year, we expect an improvement in market activity going forward led by positive investor / occupier sentiments.

The following are a few broad trends that the sector observed during the half-year:

• In H1 2022, I&L demand stood at 12.8 million sq. ft., a decrease of about 17% on a half-yearly basis and 9% Y-o-Y.
• Delhi-NCR, Bangalore and Mumbai dominated leasing activity; together these cities accounted for more than half of the overall space take-up.
• 3PL firms continued to drive the leasing activity with a share of 46% in H1 2022, followed by engineering & manufacturing, retail and e-commerce players.
• Supply addition decreased by about 32% on a half-yearly basis and 8% Y-o-Y to touch 10 million sq. ft. during H1 2022.
• Mumbai followed by Kolkata led the supply addition, together accounting for about half of the project completions.