Kolkata / New Delhi, Aug 16 (Agency) Industrial and Logistics (I&L) sector leasing in Kolkata recorded significant 78 percent Y-o-Y growth in Jan-Jun ’24, with leasing activity touching 3 mn. sq. ft despite a total supply of 1.5 mn. sq. ft., strong demand drove up absorption rates in the city, according to India’s leading real estate consulting firm – ‘CBRE Industrial & Logistics Figures H1 2024’. According to the report, Industrial and Logistics (I&L) sector leasing in this metropolis recorded significant 78 pc Y-o-Y growth upto June, 2024 with leasing activity touching 3 mn. sq. ft. Despite a total supply of 1.5 mn. sq. ft., strong demand drove up absorption rates in the city. In Jan- Jun ‘24, among the industry segments in Kolkata, 3PL drove leasing with a share of about (29 pc), followed by engineering & manufacturing (19 pc) and retail (15 pc).
Key leasing transactions recorded in the city were Samsung leasing 275,000 sq. ft. in Prospace Industrial Park Style Bazaar leasing 200,000 sq. ft. in Prospace Industrial Park PepsiCo leasing 155,000 sq. ft. in EFC Logistics Park. On a pan-India basis, during Jan-Jun’24 period, Industrial & Logistics (I&L) leasing across 8 cities saw a moderation, totalling 16.6 mn. sq. ft. Despite this, a rebound in space absorption is expected in the second half of the year, driven by new market entrants, increased inquiries, high-quality supply, and the finalization of pending deals in sectors like 3PL, retail, and FMCG.
As per the report, 3PL players continued to drive I&L absorption with a 40% share in Jan-Jun’24 period, followed by Engineering & Manufacturing (E&M) firms with an 18% share and FMCG firms at 10 pc. Supply additions decreased by 16% to 15.5 mn. sq. ft. during this period, with Chennai, Bengaluru, and Mumbai contributing 57 pc of the total supply. Larger developers, backed by institutional investors, accounted for about 33 pc of this supply, with Chennai, Delhi-NCR, and Pune leading in project completions. From Jan-Jun’24, the share of FMCG and E-commerce players in total space takeup stood at approximately 10 pc and 9 pc, respectively. However, these shares are likely to increase in the second half of the year on account of the festive season-linked surge in sales.
Other sectors that drove I&L leasing include retail (7 pc) and electronics & electricals (6 pc). Bengaluru, Delhi-NCR and Kolkata dominated the leasing activity, cumulatively accounting for almost 58% of the overall space take-up in H1 2024. Additionally, these three cities registered an expansion in space absorption compared to the corresponding period of the previous year. “The Indian industrial and logistics (I&L) sector is poised for a period of sustained growth, with promising indicators emerging for the latter half of 2024. While the first half witnessed a shift towards smaller transactions, the market’s underlying fundamentals remain robust. We anticipate a resurgence in leasing activity driven by a combination of factors, including increased demand from diverse sectors, the entry of new market players, and the availability of high-quality supply. These positive developments collectively contribute to an optimistic outlook for the I&L sector”. Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE Anshuman Magazine.