Experiencing an unprecedented surge, India’s logistics sector achieved remarkable milestones in 2023. According to a CBRE report, Industrial & Logistics (I&L) leasing in the Mumbai Metropolitan Region (MMR) soared to an unprecedented 9.9 million square feet, signaling a promising upward trajectory in the industry. The report, titled ‘CBRE Industrial & Logistics Figures H2 2023,’ conducted by CBRE South Asia Pvt Ltd, delved into the leasing landscape, attributing the robust figures to a significant boost in leasing activity during the second half of the year, accounting for 5.3 million square feet.
The analysis identified third-party logistics (3PL) players as the primary driving force behind this growth, contributing approximately 73% of total leases. Following closely were engineering & manufacturing and retail firms. Bhiwandi emerged as the leading area for space occupancy, adding another accolade to its achievements.
Several noteworthy leasing transactions in MMR contributed to the impressive figures for 2023. Global footwear brand Skechers, delivery company Delhivery, and international transport and logistics firm DSV were among the prominent contributors to the leasing activity. Additionally, significant investment was witnessed in Bhiwandi’s K Square Logistics Park, courtesy of Morgan Stanley Real Estate Investing.
On a national scale, I&L leasing across the country’s top eight cities reached an unprecedented 38.8 million square feet, marking an 8% increase from the previous year and signaling a robust growth trajectory. Cities such as Delhi-NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune also played pivotal roles in contributing to the record-breaking numbers.
Key factors driving this growth included increased demand for last-mile delivery solutions and the adoption of structured operational models in industries like retail and FMCG. Government policies, such as the Production Linked Incentive scheme, played a crucial role, particularly in the engineering and manufacturing sectors.
Experts from CBRE highlighted the sector’s resilience in the face of global economic challenges and underscored the strategic importance of partnerships with 3PL firms to streamline supply chain operations, enhance flexibility, and reduce costs.