Industrial and logistics sector grew 8% YoY in 2022: CBRE
WAREHOUSING & LOGISTICS

Industrial and logistics sector grew 8% YoY in 2022: CBRE

Despite global headwinds, a slowdown in e-commerce demand and dissipation of the post-pandemic need to hold additional inventories, the leasing activity in the industrial and logistics sector grew 8% year-on-year (YoY) to touch 31.6 mn sq ft in 2022 according to a report by real estate consultant CBRE.

After the 2019 peak of 32 mn sq. ft., this is the second-highest leasing activity recorded in the sector with total supply in 2022 touching 20.9 mn sq. ft.

Delhi-NCR led the absorption with 7.3 mn sq. ft., followed by Mumbai and Bangalore with 6.1 mn sq. ft and 5.2 mn sq. ft in 2022, respectively. The three cities accounted for almost 60% of the leasing activity during the year. All cities recorded stable or increased annual space take-up except Bangalore and Pune.

Leading the absorption, 3PL players accounted for about half of the annual space take-up, driven by heightened demand from interlinked stakeholders across the supply chain (wholesalers, retailers, & e-commerce players) for the need to shore up distribution capabilities. 3PL players have cumulatively leased more than 60 million sq. ft across India, over the last five years. A majority of this space take-up was led by domestic occupiers.

Engineering and manufacturing firms in 2022 held a share of 16% in the total leasing, which was up by 6% from the previous year. For local engineering and industrial players, government policy enablers like the Production Linked Incentive (PLI) programme worked as a growth stimulant.

Space take-up was dominated by small-sized transactions (<50,000 sq. ft.), with a share of about 40% in 2022. The share of medium (50,000 – 100,000 sq. ft.) and large-sized (more than 100,000 sq. ft.) transactions were about 29% and 31%, respectively during 2022.

The demand for investment-grade assets was led by an improvement in leasing sentiment and a rise in input costs, quoted rental values increased on an annual basis in most micro-markets across cities in 2022.

During the year, only Chennai and Ahmedabad witnessed stable rents. About 20-30% YoY growth was witnessed in Pimpri – Chinchwad and Chakan – Talegaon, whereas Hyderabad witnessed 23-25% YoY growth in Northern Corridor. Bangalore witnessed rental growth of 18-20% YoY in the Western Corridor.

Despite global headwinds, a slowdown in e-commerce demand and dissipation of the post-pandemic need to hold additional inventories, the leasing activity in the industrial and logistics sector grew 8% year-on-year (YoY) to touch 31.6 mn sq ft in 2022 according to a report by real estate consultant CBRE. After the 2019 peak of 32 mn sq. ft., this is the second-highest leasing activity recorded in the sector with total supply in 2022 touching 20.9 mn sq. ft. Delhi-NCR led the absorption with 7.3 mn sq. ft., followed by Mumbai and Bangalore with 6.1 mn sq. ft and 5.2 mn sq. ft in 2022, respectively. The three cities accounted for almost 60% of the leasing activity during the year. All cities recorded stable or increased annual space take-up except Bangalore and Pune. Leading the absorption, 3PL players accounted for about half of the annual space take-up, driven by heightened demand from interlinked stakeholders across the supply chain (wholesalers, retailers, & e-commerce players) for the need to shore up distribution capabilities. 3PL players have cumulatively leased more than 60 million sq. ft across India, over the last five years. A majority of this space take-up was led by domestic occupiers. Engineering and manufacturing firms in 2022 held a share of 16% in the total leasing, which was up by 6% from the previous year. For local engineering and industrial players, government policy enablers like the Production Linked Incentive (PLI) programme worked as a growth stimulant. Space take-up was dominated by small-sized transactions (<50,000 sq. ft.), with a share of about 40% in 2022. The share of medium (50,000 – 100,000 sq. ft.) and large-sized (more than 100,000 sq. ft.) transactions were about 29% and 31%, respectively during 2022. The demand for investment-grade assets was led by an improvement in leasing sentiment and a rise in input costs, quoted rental values increased on an annual basis in most micro-markets across cities in 2022. During the year, only Chennai and Ahmedabad witnessed stable rents. About 20-30% YoY growth was witnessed in Pimpri – Chinchwad and Chakan – Talegaon, whereas Hyderabad witnessed 23-25% YoY growth in Northern Corridor. Bangalore witnessed rental growth of 18-20% YoY in the Western Corridor.

Next Story
Infrastructure Urban

India Spent Rs 1.5 Tn on Smart Cities in Past 10 Years

The Indian government launched the Smart Cities Mission on June 15, 2015, with the goal of transforming urban infrastructure across the country. As of April 11, 2025, ten years since its inception, over Rs 1.5 trillion has been spent on 7,504 completed projects, representing 94 per cent of the total planned projects valued at more than Rs 1.64 trillion. An additional Rs 131.42 billion worth of projects are currently under implementation. According to data from SBI Research, 92 per cent of the funds were utilised across 21 major states, with Uttar Pradesh, Tamil Nadu, and Maharashtra together ..

Next Story
Infrastructure Energy

Hyundai’s EcoGram Converts Gurugram’s Waste to Clean Energy

Hyundai’s EcoGram, a biogas plant and material recovery facility located in Gurugram, Haryana, has been established to support circular economy initiatives. The facility collects both wet and dry waste from 20 bulk waste generators, including residential welfare associations (RWAs), corporate offices, and commercial complexes, with assistance from the Municipal Corporation of Gurugram (MCG). At the facility, the collected waste undergoes processing—wet waste is converted into biogas, which is then used to generate electricity, while dry waste is sorted for recycling. Since its inception,..

Next Story
Infrastructure Transport

Metro Line 8 DPR Nears Completion; CIDCO to Float Rs 200 Bn Tenders

The City and Industrial Development Corporation (CIDCO) is nearing completion of the Detailed Project Report (DPR) for Metro Line 8, commonly known as the Gold Line. This strategic 34.9-kilometre corridor is set to link Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) with the upcoming Navi Mumbai International Airport (NMIA). Estimated to cost around Rs 200 billion, the project is being developed under the Public-Private Partnership (PPP) model. Once completed, Metro Line 8 will become Mumbai's second such corridor after Metro Line 1. CIDCO plans to float tenders once ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?