Mumbai Emerges As Top City For Industrial & Logistics Leasing In India

New Delhi, Oct 25 (KNN) The leasing in the I&L sector grew by 13% year-on-year during January-September 2023 with Mumbai as the number one city, as per a report by CBRE South Asia.

Mumbai, Chennai, and Delhi-NCR account for 56% in the leasing activity during the period.

Domestic corporations have taken the lead in leasing activities, capturing a substantial 59% share, the report says. 

Mumbai witnessed a significant year-on-year growth of 22% in absorption, reaching 5.3 million square feet during the period of January to September 2023. 

It also accounted for a 19% share in pan-India I&L leasing during January to September 2023. 

“The I&L sector in Mumbai has witnessed remarkable growth in absorption, driven by the surge in quality supply additions and robust festive demand. With the completion of pent-up projects, the overall absorption is expected to reach a 5-year high by the end of 2023, said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

Third-party logistics, engineering & manufacturing, and FMCG sectors were the major contributors to absorption in Mumbai. The city also recorded a supply addition of 3.4 million sq. ft. during January to September 2023. In the July to September quarter, Mumbai witnessed a leasing of 1.3 million sq. ft. and a supply addition of 0.9 million sq. ft.

The I&L sector in India is expected to reach a 5-year high absorption mark of 36-38 million sq ft in 2023 across the top 8 cities. Supply addition is also projected to outperform, reaching 35-37 million sq ft by the end of the year. 

(KNN Bureau)