India industrial, warehousing leasing hits record 59.1M sq ft in Jan-Sep

India's industrial and warehousing sector demonstrated robust growth during the January-to-September period, according to property consultant Savills. Leasing activity across the nation's top 24 cities reached 59.1 million square feet, marking a record achievement for the timeframe. The announcement indicated that demand stemmed primarily from light manufacturing, e-commerce, and third-party logistics operators seeking suitable facilities. Tier-I cities proved to be the dominant driver, capturing 47.2 million sq ft of the total leasing volume. Fresh supply additions reached 68.9 million sq ft during the same period, the data showed, suggesting developers continue to respond to sustained market appetite.

The performance reflects significant structural shifts in India's economic landscape. Rising e-commerce penetration, coupled with companies' efforts to diversify and strengthen supply chains, has created sustained demand for logistics and warehousing infrastructure. The industrial real estate sector has emerged as a key beneficiary of India's broader economic growth, attracting institutional capital and developer focus. Savills' data indicates a healthy market equilibrium, with fresh supply meeting robust demand. For market participants, the record leasing figures suggest continued expansion opportunities in logistics hubs and distribution centers. The sector's momentum reflects investor confidence in India's consumption trajectory and manufacturing resilience, signaling that industrial and warehousing assets remain attractive for both operators and real estate investors navigating evolving supply chain dynamics.

Source: Markets-Economic Times