Bengaluru, 23 April (IANS). In the first quarter of 2025 in the top eight cities of India, the demand for industrial and warehousing remained strong at 9 million sq ft, with a 15 percent increase on an annual basis. This information was given in a report released on Wednesday.
Delhi-NCR and Chennai gained an edge in demand, including about 57 percent of the total leasing in the first quarter.
According to a report by Colliers, Delhi-NCR recorded a great increase in demand for Grade A Industrial and Warehousing Space.
In the top eight cities, the engineering sector carried forward the demand in this quarter, which contributed about 25 percent to the total industrial and warehousing space, after which e-commerce finished second with 21 percent stake.
Both these regions also left behind the demand of the players ‘third party logistics (3 PL)’ players, which is always at the forefront.
The report stated that a strong trend was seen from those living in engineering sector in Chennai and Bangalore, while demands were registered by e-commerce companies in Delhi-NCR and Mumbai.
Vijay Ganesh, managing director of Industrial and Logistics Services of Colliers India, said, “Automobile companies also bought grade A industrial and warehousing space in 1.3 million sq ft.
During the quarter, engineering and e-commerce companies contributed to large parts of leasing, which was about 46 percent of the total demand.
With about 2.2 million sq ft leasing in the first quarter of 2025, engineering firms took about one-fourth of the grade A industrial and warehousing demand.
Due to strong demand in Chennai and Bangalore, the region saw more than 2 times the increase in leasing activity on an annual basis.
The report said that about 2 million square feet of leasing was also seen in e-commerce, which contributed to Delhi-NCR and Mumbai.
During the first quarter of 2025, large deals above 2,00,000 sq ft were equal to 48 percent with a demand of 4.3 million sq ft.
These big deals were associated with e-commerce companies. This was followed by engineering and automobile firms.
A new supply of 9.4 million sq ft was recorded in the first quarter of 2025, which shows a 16 percent increase on an annual basis.
The report stated that the new supply during the quarter was in view of strong leasing activity, which reflects the developer’s better confidence in the industrial and warehousing market.
-IANS
SKT/KR
