New Delhi, Oct 16 (IANS): Industrial and warehousing demand witnessed 20.2 million square feet of leasing in top five cities in the January-September period, registering a 17 per cent annual growth, according to a report on Wednesday.

The quarterly average space uptake has steadily increased from 5.7 mn sq ft in 2021 to 6.7 mn sq ft in 2024, indicating steady and sturdy growth in industrial and warehousing demand, according to the report by Colliers India.

Third-party logistics (3PL) players accounted for 35 per cent of Grade A space uptake, followed by engineering and FMCG segments.

At about 22 mn sq ft, supply rose 29 per cdnt YoY in the first three quarters of 2024. During the first three quarters of the year, Delhi-NCR and Chennai cumulatively accounted for 53 per cent share in the overall leasing.

At a micro-market level, Bhiwandi in Mumbai has witnessed 3.7 mn sq ft of leasing activity in 2024, followed by Oragadam in Chennai and Chakan-Talegaon in Pune. Both saw more than 2.0 mn sq ft of demand and continue to drive warehousing demand in respective cities.

“On a quarterly basis, Q3 saw about 7.3 mn sq ft of industrial and warehousing demand across the top five cities, an 18 per cent rise YoY,” said Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.

With 2.3 mn sq ft of leasing and about one-third share, Delhi-NCR continued to drive quarterly demand. The demand in the region was led by large uptake of industrial and warehousing space in Bhaproda and Kulana micro markets.

Moreover, with increased demand for quality Grade A spaces replete with sustainable and technologically advanced features, leasing momentum by such firms is likely to continue over the next few years,” Ganesh added.

The rise of quick commerce players is likely to catalyse demand for bigger hub-warehouses, across major urban centres.

Interestingly, the electronics segment continued to witness heightened traction, with 2X times leasing in the first three quarters of 2024, compared to the corresponding period in 2023, the report mentioned.