India Market Monitor Q3 2024 – Industrial & Logistics

India’s industrial and logistics (I&L) sector witnessed an uptick in leasing activity on a quarterly basis in Q3 2024, with space absorption of 11.4 million sq. ft. While supply moderated compared to the previous quarter, it is anticipated to accelerate going forward with the launch of several prominent projects backed by institutional investors.

Delhi-NCR, Bengaluru, and Chennai are anticipated to be the key drivers of this increasing demand. With intensification of ‘flight-to-quality’ requirements and the launch of investment-grade assets that command a premium, rentals are expected to increase across key markets. In terms of tenant sectors, third-party logistics (3PL) firms are expected to maintain dominance in the logistics space as occupiers progressively outsource their storage and delivery capabilities to minimise lead times and optimise costs.

To facilitate proximity to a larger population and optimise operational costs, occupiers are also anticipated to continue expanding their distribution networks across tier-II and III cities. Chandigarh, Hosur, Jaipur, Lucknow, and Vizag are projected to be the key focal points for warehousing expansion in these emerging regions.

To delve deeper into our analysis of the country’s I&L real estate landscape in Q3 2024, please click on the download button.