The Industrial & Logistics (I&L) sector in India experienced a significant boost in leasing activity during the third quarter of 2024, with a 48% quarter-on-quarter increase. According to a CBRE report, leasing absorption in India’s top eight cities reached 11.4 million square feet, surpassing the previous quarter’s 7.7 million square feet.
Delhi-NCR, Kolkata, and Hyderabad were pivotal, contributing 65% of the total leasing volume. Delhi-NCR led with 3.4 million square feet, followed by Kolkata at 2.4 million square feet and Hyderabad securing 1.7 million square feet. Other key cities, including Bengaluru, Mumbai, and Chennai, also showed robust leasing activity.
The third-party logistics sector seized 38% of the leasing share. Meanwhile, domestic corporations dominated with an 82% participation, highlighting their growing prominence. Rental rates soared in select micro-markets, reinforcing the sector’s dynamic growth. Emerging markets aim to further amplify this expansion, focusing on optimized distribution networks.