- 39.5 million sq. ft. of transactions in 2024
- CBRE report revealed
Industrial and logistics leasing has hit a record high across the country. In the 2024 fiscal year, leasing reached an all-time high of 39.5 million square feet. Delhi, Bengaluru, and Kolkata together accounted for 60% of the total leasing volume. This was revealed in the latest CBRE report. Additionally, supply in 2024 was substantial. A total of 38.6 million square feet of supply occurred across eight major cities in the country. Mumbai, Chennai, and Bengaluru played key roles in this supply. Third-party logistics companies were key players in space take-up, accounting for 41% of the total leasing.
Engineering and manufacturing companies hold an 18% share. The majority of transactions took place in spaces smaller than 50,000 square feet, making up 43% of the total leasing. Transactions in the range of 50,000 to 100,000 square feet and those larger than 100,000 square feet each accounted for 28% of the total. In the second half of 2024, leasing was recorded at 23 million square feet, reflecting a 17% increase year-on-year. The growth was driven by the revival of demand from leading e-commerce companies, improved customer services, the expansion of quick-commerce operators, third-party logistics (3PL), and the surge in fast-moving consumer goods (FMCG) players.
City-wise, from July to December 2024, Bengaluru saw 3.6 million square feet of industrial and logistics leasing, while Hyderabad recorded 2.4 million square feet. Delhi had 6.5 million square feet, Mumbai had 2.8 million square feet, Chennai had 1.5 million square feet, Pune had 1 million square feet, Ahmedabad had 1.4 million square feet, and Kolkata saw 3.6 million square feet of leasing.
“Despite global economic uncertainties, the remarkable growth in the industrial and logistics sector highlights its importance. Leasing activity remained strong in key cities in 2024. The dominance of 3PL providers with a 41% share emphasizes their critical role in shaping the future of the sector. In-city warehousing and quick-commerce are expected to gain even more significance in 2025,” said Anshuman Magazine, CEO of CBRE India.
