India Industrial & Logistics Figures H2 2022

The Industrial and Logistics (I&L) sector witnessed a sustained demand during 2022 with an uptick in space take-up. As a result, leasing almost touched the pre-COVID peak of 32 million sq. ft. recorded in 2019. This increase in space take-up was despite global headwinds, slowdown in e-commerce demand and dissipation of the post-pandemic need to hold additional inventories.

Below are a few broad I&L trends observed during the year and in H2 2022:

• I&L space take-up increased by about 8% Y-o-Y to touch 31.6 million sq. ft. during 2022.
• On a half-yearly basis, the I&L sector witnessed a 46% jump in space take-up, which touched 18.8 million sq. ft. in H2 2022.
• Delhi-NCR, Mumbai and Bangalore together accounted for about 60% of annual and half-yearly leasing activity.
• Supply addition decreased by 18% y-o-y to touch 20.9 million sq. ft. during the year. However, in H2 2022, supply addition improved by 11% on a half-yearly basis to almost 11 million sq. ft.
• Mumbai, Chennai, Kolkata and Bangalore drove annual supply with a cumulative share of about 64%. On the other hand, Delhi-NCR, Chennai, Bangalore and Mumbai led half-yearly supply with a cumulative share of about 73%.
• 3PL players followed by engineering & manufacturing companies and retail firms led the space take-up, both quarterly and half-yearly.

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