Industrial, warehousing space leasing up 35% in 2021; new supply rises 64%


Team Udayavani, Jan 16, 2022, 12:23 PM IST

Credit: iStock Photo

 

Leasing of industrial and warehousing spaces across eight major cities went up by 35 per cent during 2021 to 35.1 million square feet, driven by higher demand from third-party logistics and e-commerce players, according to Savills India.

The leasing stood at 26 million square feet in the previous calendar year.

Property consultant Savills India highlighted in a report that fresh supply rose 64 per cent to 36 million square feet from 22 million square feet during the period under review.

Third-party logistics ( 3PL) players and e-commerce companies continued to drive warehousing demand, accounting for 62 per cent of the total absorption in 2021, followed by manufacturing sector at 14 per cent.

Among the major eight cities in India, Delhi-NCR led with the highest absorption in 2021 at 8.1 million square feet, followed by Pune at 6.5 million square feet.

Mumbai and Bengaluru saw absorptions of 6 million square feet and 4.6 million square feet, respectively.

Apart from eight major cities, Savills India reported that leasing of industrial and warehousing space stood at 8.6 million square feet in 11 tier II, III cities while new supply was at 8.9 million square feet.

The comparative figures of tier II and III cities were not available.

Savills noted that the rental values remained stable in 2021 across the major cities.

New projects were delivered with improved specifications and of high quality environmental, health and safety (EHS) standards.

The market witnessed 4,200-plus acres of manufacturing and warehousing land transactions across tier I and tier II cities. The industrial and logistics sector witnessed investments exceeding $1.5 billion in 2021.

“Continued interest in this asset class was due to its growth potential and stable returns. The market is likely to witness continued and growing interest from investors in this asset class in 2022 as well,” Savills said.

The overall industrial and warehousing space stock in tier I cities stood at 266 million square feet at the end of 2021.

Meanwhile, vacancy levels in tier I cities have increased from 8.4 per cent in 2020 to 9.4 per cent in 2021, the report said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Karnataka invites UK varsity to set up campus in Bengaluru

I will play IPL next year, will be unfair not to say thank you to Chennai: MS Dhoni

Chhattisgarh: Woman jumps into Chitrakote waterfall, video goes viral

Ram Temple idol installation in Jan 2024: Vishwaprasanna Teertha Swamiji of Pejawar Matha

Prepared for BBMP elections, welcome SC order: Karnataka CM

Gang of international smugglers held with 218 kg of heroin worth Rs 1,500 crore off Lakshadweep coast

Bommai to participate in annual meet of World Economic Forum in Switzerland


Related Articles More

DGCA grants Jet Airways air operator certificate, can resume commercial flight ops

Markets claw back lost ground amid global rebound; post weekly gains

RBI to pay Rs 30,307 crore dividend to govt for FY22

Sensex dives 1,155 points in early trade amid weak global markets

India better placed to face global challenges and uncertainties: CEA

MUST WATCH

Kalasa Crime : CCTV Footage found

The success formula of dairy farming

NEWS BULLETIN 20-05-2022

SSC Result : Sirsi Governament School Students Achivement

Important Health Tips Must Watch


Latest Additions

Over 20 shops gutted in massive fire at Delhi’s Jhandewalan cycle market

Karnataka invites UK varsity to set up campus in Bengaluru

I will play IPL next year, will be unfair not to say thank you to Chennai: MS Dhoni

Udupi: 45-year-old man ventures out at night, goes missing

Chhattisgarh: Woman jumps into Chitrakote waterfall, video goes viral

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.