Colliers India Report: Industrial & Warehousing leasing falls 12% YoY

25 Jul 2023 CW Team

Delhi-NCR accounted for a substantial 25 per cent share of the demand, with Mumbai trailing closely at 24.6 per cent. Other cities experienced minor single-digit changes in their demand, as indicated in the report.

Various factors have contributed to the overall growth of the industrial and warehousing market, including increased production capacity, robust government policy support, and the integration of automated and process-driven manufacturing. While 3PL players are expected to continue dominating the demand, the report predicts steady leasing momentum from other segments as well, according to Vijay Ganesh, Managing Director of Industrial and Logistics Services at Colliers India.

Despite challenging global economic conditions, the Indian industrial and warehousing sector has been continuously expanding, fuelled by rising capital investments, manufacturing output, and favourable government policies.

During H1 2023, the robust leasing activity was primarily driven by 3PL operators, accounting for 37 per cent of the total leasing volume. FMCG and Engineering firms contributed 12 per cent and 11 per cent shares, respectively. The most remarkable growth was observed in the E-commerce sector, which saw a notable surge of 68 per cent year-on-year, rebounding after a relatively slower period in recent quarters.

The growth of India's retail and manufacturing sectors has sparked a significant upswing in the warehousing and logistics industry. This growth has attracted the attention of NRIs, HNIs, and UHNIs seeking lucrative investment opportunities and has also paved the way for the development of essential logistics infrastructure. Additionally, the establishment of industrial corridors and the expansion of e-commerce businesses have further accelerated the industry's growth, as mentioned by Abhijit Verma, Managing Director at Avinya Industrial and Logistics Parks.

According to a recent report by Colliers India, the demand for industrial and warehousing space in the top five cities remained stable in the first half of 2023, with a leasing activity of 11 million square feet, matching the figures from the previous year. The city leading the demand was Delhi NCR, closely followed by Mumbai.Delhi-NCR accounted for a substantial 25 per cent share of the demand, with Mumbai trailing closely at 24.6 per cent. Other cities experienced minor single-digit changes in their demand, as indicated in the report.Various factors have contributed to the overall growth of the industrial and warehousing market, including increased production capacity, robust government policy support, and the integration of automated and process-driven manufacturing. While 3PL players are expected to continue dominating the demand, the report predicts steady leasing momentum from other segments as well, according to Vijay Ganesh, Managing Director of Industrial and Logistics Services at Colliers India.Despite challenging global economic conditions, the Indian industrial and warehousing sector has been continuously expanding, fuelled by rising capital investments, manufacturing output, and favourable government policies.During H1 2023, the robust leasing activity was primarily driven by 3PL operators, accounting for 37 per cent of the total leasing volume. FMCG and Engineering firms contributed 12 per cent and 11 per cent shares, respectively. The most remarkable growth was observed in the E-commerce sector, which saw a notable surge of 68 per cent year-on-year, rebounding after a relatively slower period in recent quarters.The growth of India's retail and manufacturing sectors has sparked a significant upswing in the warehousing and logistics industry. This growth has attracted the attention of NRIs, HNIs, and UHNIs seeking lucrative investment opportunities and has also paved the way for the development of essential logistics infrastructure. Additionally, the establishment of industrial corridors and the expansion of e-commerce businesses have further accelerated the industry's growth, as mentioned by Abhijit Verma, Managing Director at Avinya Industrial and Logistics Parks.

Building Material

12 Sep 2025

Trishakti Industries Secures Major Tata Steel Order

Trishakti Industries Limited has secured a significant order from Tata Steel Ltd for the deployment of advanced machinery and skilled manpower at one of the steel major’s flagship project sites.The contract, awarded domestically, involves the hiring of machines along with manpower, with execution set to be completed by 20th September 2025. The initial contract period is 12 months. The total fresh capital expenditure for the project is approximately Rs 1.5 million, while the overall contract value is expected to exceed Rs 5 million inclusive of taxes.This order marks a reinforcement of top-ti..

Real Estate

12 Sep 2025

Kalpataru Projects Secures Rs 27.2 Billion in New Orders

Kalpataru Projects International Limited (KPIL), a leading EPC player in the power transmission and distribution (T&D) and civil infrastructure sector, along with its international subsidiaries, has received new orders and notifications for projects worth approximately Rs 27.2 billion.The projects include:Power Transmission & Distribution (T&D) initiatives in India and overseas.Buildings and Factories (B&F) projects in India.Manish Mohnot, MD & CEO of KPIL, said, “We are delighted with the strong ordering momentum in our T&D and B&F businesses. The orders include ..

Infrastructure Energy

12 Sep 2025

ACME Solar Secures Rs 38.92 Billion Financing for Barmer Project

ACME Solar Holdings rose 2.05 per cent to Rs 308.50 after its wholly owned subsidiary, ACME Venus Urja, secured long-term project financing of Rs 38.92 billion from the State Bank of India (SBI).The funds will be utilised for the development and construction of a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan. The loan repayment is structured over 19 years.The Barmer-based FDRE project is contracted with NHPC at a tariff of Rs 4.64 per unit. It will integrate solar power generation with a Battery Energy Storage System (BESS) to ensure higher reliability and d..