Kolkata witnessed strong demand for warehousing and industrial space in the first half of 2023, with net absorption of 1.3 million square feet, the fifth highest among the top eight cities in India, according to a report by JLL India.
The report, "H1'2023 India: Logistics and Industrial State of the Nation", said that the cumulative Grade A and B supply in India's Warehousing and Industrial sector is expected to reach 516 million square feet by 2026 backed by strong international and domestic corporate investment intent and USD 1813 billion infra pipeline from 7532 projects.
Mumbai topped in warehousing and industrial space in net absorption of grade A & B supply in the first half of 2023 with 4.26 million square feet, followed by Pune with 3.27 million square feet and Delhi with 2.34 million square feet. Kolkata stood fifth top city with net absorption of 1.3 million square feet.
"The logistics and industrial sector has shown resilience post-pandemic. A muted demand is privy to the global economic turmoil in recent quarters, We expect the logistics and industrial leasing to pick pace in the second half of this year and upward bias on rentals in select markets in the near future,” Yogesh Shevade, Head of Logistics & Industrial, JLL India, said.
"Kolkata is well-positioned to emerge as a key logistics hub in eastern India, given its strategic location and connectivity to key markets. The city is also home to a number of large manufacturing and distribution companies, which is driving demand for warehousing and industrial space," officials said.
The report also found that third-party logistics providers dominated the leasing and industrial sector across the top eight cities, with a 43 per cent share in the demand. FMCG and retail segment accounted for 15 per cent of the leasing pie in H1'2023 against 23 per cent during the same period last year. Auto and engineering segments cornered 23 per cent share of the leasing.
The leasing in the industrial sector witnessed year-on-year rental growth of 6.5 per cent in H1 2023, touching an Indian average of Rs 23 per square foot per month for grade A spaces. Pune, Chennai, and Bengaluru led the average rental growth in Grade A leasing stocks.
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