Leasing of industrial and warehousing spaces across eight major Indian cities rose by 35 per cent during 2021 to 35.1 million sq. ft. from 26 million sq. ft in 2020, driven by higher demand from third-party logistics (3PL) and e-commerce players, according to Savills India. Fresh supply rose by 64 per cent to 36 million sq. ft. from 22 million sq. ft. last year.

Savills is a global real estate services provider headquartered in London.

In a report, the company said 3PL players and e-commerce companies continued to drive warehousing demand, accounting for 62 per cent of the total absorption in 2021, followed by the manufacturing sector at 14 per cent.

Leasing of industrial and warehousing spaces across eight major Indian cities rose by 35 per cent during 2021 to 35.1 million sq. ft. from 26 million sq. ft in 2020, driven by higher demand from third-party logistics and e-commerce players, according to Savills India. Fresh supply rose by 64 per cent to 36 million sq. ft. from 22 million sq. ft. last year.

Among the major eight cities in India, Delhi-National Capital Region led with the highest absorption in 2021 at 8.1 million sq. ft., followed by Pune at 6.5 million sq. ft. Mumbai and Bengaluru saw absorptions of 6 million sq. ft. and 4.6 million sq. ft. respectively.

Leasing of industrial and warehousing space stood at 8.6 million sq. ft. in 11 tier-II and -III cities while new supply was at 8.9 million sq. ft.

Rental values remained stable in 2021 across the major cities, Savills India added.

Fibre2Fashion News Desk (DS)