Warehouse Leasing Up By A Third In 2021

With ecommerce diverting a lot of brick-and-mortar retail traffic back to the bedroom, demand for warehousing and industrial real estate estate is on the uptick. 

Yeah? Got Some Numbers?

Per Savills India, driven by higher demand from third-party logistics and e-commerce players:

📌 Industrial and warehouse space leasing across eight major cities went up by 35% in 2021 to 35.1 million sq. ft. - up from 26 million sq. ft. in 2020. 

📌 Fresh supply of industrial and warehouse real estate also went up by 64% to 36 million sq. ft. from 22 million sq. ft. in 2020. 

📌 Among the major cities, Delhi-NCR led with the highest absorption in 2021 at 8.1 million sq. ft., followed by Pune at 6.5 million sq. ft. 

Who Needs All That Space?

Third-party logistics (3PL) companies and e-commerce players continued to drive warehousing demand, accounting for 62% of the total absorption in 2021, followed by the manufacturing sector at 14%.

Looking Ahead?

🎙 "Continued interest in this asset class was due to its growth potential and stable returns. The market is likely to witness continued and growing interest from investors in this asset class in 2022 as well," per the Savills report.