Industrial and Logistics (I&L) sector in Kolkata will record a 5-year high supply in 2023 as a result of the completion of pent-up projects across the city and its peripheries.
Total I&L supply in 2023 is likely to touch 5.2 mn. sq. ft. Kolkata’s strategic location as the entry point to the country’s east and further to land-locked countries such as Nepal and Bhutan and the state’s industrial prowess has further boosted the city’s I&L sector.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The current real estate landscape in the state, particularly in Kolkata, is witnessing a transformative phase where the infusion of quality supply is fueling absorption, propelling the growth trajectory of the state’s real estate sector”.
Total I&L leasing in the city in 2023 is likely to touch ~3.5 mn. sq. ft. sustaining 2022 levels. During the Jan-Sep’23 period total leasing in I&L sector in the city stood at 2.7 mn. sq. ft. The city has close to 10 mn. sq. ft. of Grade A logistics developments in NH-2, NH-6, and Taratala regions.
“Our observation of the Industrial & Logistics sector in Kolkata recording a 5-year high supply in 2023 with a notable absorption underscores the sector’s resilience and dynamism. The anticipated absorption of 3.5 million sq. ft. in CY 2023 indicates a positive outlook for leasing activities, suggesting a potential surge in demand for commercial spaces”, he said.
The I&L growth in the city has been primarily in the micro-markets of NH – 2 & NH – 6 due to strategic positioning along the National Highway, signifying the likelihood of further growth in both industrial and commercial activities, especially in Dankuni and Singur.
Meanwhile, NH – 6 emerges as a multifaceted micro-market, encompassing industrial zones such as Dhulagarh and evolving areas such as Uluberia, reflecting a combination of industrial and residential development. In the Taratala micro-market, locations such as Taratala Road, Hyde Road going upto Maheshtala, there is a distinctive mix of industrial and commercial activities, indicating the potential for growth and progress in these areas.