India’s industrial and warehousing demand strengthens in 2022: Report
In 2022, 24.5 million sq ft of industrial and warehousing was absorbed, up 8 per cent yearly across the top five metros.
Parul January 23, 2023
MORE IN News
MDH, Everest row: FSSAI turns on the heat, to check quality of masalas sold in India
Now Indian spices in controversy: Singapore, Hong Kong bans MDH, Everest masala
RBI asks payment firms to report suspicious fund transfers during LS polls
Karnataka, Gujarat lead India’s clean energy transition race Report
CCI launches market study on AI and its competitive potential
The year 2022 has been comparatively good for the Indian industrial and warehousing sector as it saw demand improving after a Covid-led slump in economic activities.
In 2022, 24.5 million sq ft of industrial and warehousing was absorbed, up 8 per cent yearly across the top five metros, said global investment and advisory firm Colliers. Delhi was on the top in terms of absorption.
Notably, it said third-party logistics players remained the top occupier of warehousing space, contributing to about 44 per cent of the total demand in the sector during 2022.
“As consumer demand remains upbeat, third-party logistics players, e-commerce and retail companies are leasing industrial and warehousing space to cater to this growing demand,” Colliers said.
Also Read: Jammu and Kashmir launches Rs 879 crore food processing project
Improved market sentiments are expected to keep the momentum going forward. “The Indian Logistics growth story continues to remain resilient and is further progressing on an accelerated growth trajectory owing to the focus on companies catering to changing consumer behaviour across India,” said Shyam Arumugam, managing director, of Industrial and Logistics Services, Colliers India.
“The convenience of shopping/returns, improved UPI adoption, omnichannel retailing, etc. have led to e-commerce demand growth thereby translating into demand for more warehousing capacities especially to augment last-mile connectivity in Tier I and Tier II cities this year,” added Arumugam.