Logistics, Industrial spaces demand seen at 50-53 mn sq ft in 2024: Report

Leasing of logistics and industrial (L&I) spaces is estimated at 50-53 million square feet this year across eight major cities on sustained demand, according to Cushman & Wakefield.

The leasing of L&I spaces stood at 53.57 million square feet across Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Real estate consultant Cushman & Wakefield said that as of October 2024, the leasing volume has already surpassed 41 million square feet across the top-8 real estate markets.

"Ever since the Production-Linked Incentive (PLI) scheme was introduced by the government in 2020, the industrial leasing volume witnessed healthy growth. Besides, the strong emergence of retail and e-commerce has led to intense activity in the warehousing space too," the consultant said.

For 2025, Cushman & Wakefield foresee the new-normal level of demand to sustain given the widening of the consumption base in India alongside robust industrial activity witnessed in recent years.

India is also a beneficiary of the China+1 diversification strategy followed by global manufacturing firms, the consultant noted.

Abhishek Bhutani, Managing Director, Logistics & Industrial, Cushman & Wakefield, said, "India's logistics and industrial sector continues to showcase remarkable growth potential, with leasing volumes set to surpass 50 million square feet for the third year in a row. This is driven by strong demand across quick-commerce, retail and engineering and manufacturing sectors."  He anticipates the demand for logistics and industrial spaces to remain robust in 2025, supported by India's expanding retail consumption base and continued manufacturing growth.