JLL Highlights Strong Growth Trends in Logistics and Industrial Sectors for 2024

News: India’s logistics and industrial sector has seen impressive growth in the first half of 2024, highlighting its strength in today’s market, according to a report by real estate firm JLL.

In major cities like Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, and Pune, rents for top-quality (Grade A) and slightly lower-quality (Grade B) industrial spaces have increased significantly by 4.8% and 6.4% respectively, compared to last year.

This rise in rent shows that there’s a high demand for warehousing and light manufacturing spaces.

The report also mentioned that vacancy rates, or the percentage of unoccupied properties, were 6.6% for Grade A spaces and 15.4% for Grade B spaces in the first half of 2024. The total area of industrial spaces leased out in these top eight cities is about 24.2 million square feet, with 70% being Grade A properties and 30% being Grade B.

Currently, the total supply of industrial properties in India is 393 million square feet, and it’s expected to grow to around 595 million square feet by 2027, showing the sector’s strong growth potential.

Organized Grade A warehouses now cover 204 million square feet, surpassing the 189 million square feet covered by Grade B warehouses. This indicates that businesses prefer more modern and efficient spaces, which also meet higher standards for environmental sustainability and automation.

The report also highlighted that the third-party logistics (3PL) sector is the biggest demand driver, accounting for 38% of all leases. The auto and engineering sector follows this at 23%, and the FMCG (Fast-Moving Consumer Goods), FMCD (Fast-Moving Consumer Durables), and retail sectors together contribute 20%.

Source: The Economic Times