New Delhi: Demand for warehouses could reach a five- year high in 2023 with various companies looking to take up more space ahead of the festive season.
According to CBRE, the Industrial & Logistics (I&L) sector is likely to touch a five-year high absorption mark and touch 36-38 million sqft in 2023 across top eight cities India.
“With the surge in supply additions, robust festive demand, and the completion of pent-up projects, we anticipate the overall absorption to touch a 5-year high, reaching an impressive 36-38 million square feet by the end of 2023,” said Anshuman Magazine, Chairman & CEO India, South-East Asia, Middle East & Africa, CBRE. “The active participation of larger developers backed by institutional funds, contributing around 40% to the completed projects, underscores the sector’s growth potential.”
Supply addition, too, is expected to outperform, touching 35-37 mn. sqft. by the year end, driven by the completion of pent-up projects.
In 2019, 31 million sqft was leased which dipped to 20 million sqft in 2022 but is on the rise since then. Leasing in the I&L sec- tor grew 13% YoY in the Jan- Sept 23 period. Total absorption across the top eight Indian cities stood at 27.3 million sqft, compared with 24.2 million sq ft. in Jan-Sept 22.
Source-The Economic Times