In the first three months of this year, the industrial and logistics sectors have recorded growth of 22.7 percent in the country. A total of 13.5 million square feet were transacted in Q1 2024. This is an increase of 22.7 percent compared to the 11 million square feet recorded in Q1 2023. Savills India revealed in its latest report that while Tier-1 cities have a share of 78 percent in total transactions, Tier-2 and 3 cities have a share of the remaining 22 percent. Overall, third-party logistics (3PL), sustained demand from the manufacturing sector, and increasing demand from the fast-moving consumer goods (FMCG) sector are the reasons behind the growth in this sector. It was also said that the increase in manufacturing and warehousing also contributed to the increase in overall transactions.
City-wise, in terms of supply, Delhi is at the top with a 23 percent increase, while Bengaluru is at 12 percent and Kolkata is at the next position with 10 percent. In terms of absorption, Delhi is at the top with a growth of 21 percent, while Pune and Bengaluru are in the second position with a growth of 12 percent. A decrease was recorded in Mumbai. Mumbai recorded 14 percent absorption in Q1 2023, which declined to 7 percent in Q1 this year.
