Concept of rent, search, purchase real estate. (Representative image)
Credit: iStock Photo
Bengaluru: Bengaluru recorded an increase in industrial and logistics (I&L) leasing of 68% year-on-year (YoY) between January to June (H1) 2024, said real estate consulting firm CBRE South Asia on Friday.
Total leasing for the city during H1 this year stood at 3.4 million square feet (msf) compared to 2 msf in the corresponding period last year. The supply stood at 3.2 msf in the same time period.
During the first six months of the year, among the industry segments in Bengaluru, third-party logistics drove leasing with a share of about 54%, followed by ecommerce (13%) and retail (10%).
On a pan-India basis during H1 2024, Bengaluru, Delhi-NCR and Kolkata dominated the leasing activity, cumulatively accounting for almost 58% of the overall space take-up in H1 2024. However, supply additions decreased by 16% to 15.5 msf in H1 2024. Chennai, Bengaluru, and Mumbai contributed 57% of the total supply.
Delhi-NCR, Chennai, and Bengaluru are expected to be the primary contributors to the 2024 supply pipeline, collectively accounting for nearly half of total supply additions.
Despite rising land costs and longer acquisition timelines, prominent developers and investors continue to pursue acquisition opportunities across key warehousing hubs in both Tier-I and Tier-II cities.
A rebound in space absorption is expected in the second half of the year, driven by new market entrants, increased inquiries, high-quality supply, and the finalization of pending deals in sectors like retail, and FMCG.
“The Indian industrial and leasing sector is poised for a period of sustained growth, with promising indicators emerging for the latter half of 2024. While the first half witnessed a shift towards smaller transactions, the market's underlying fundamentals remain robust,” said Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.