Industrial & logistics sector records 22% YoY demand growth in Q1 2024

The industrial and logistics sector started the year on an impressive note, with a strong absorption of 13.5 mn sq. ft. in Q1 2024 compared to 11.0 million sq. ft. in Q1 2023, representing 22.7 percent Y-o-Y growth.

Tier I cities witnessed 78 percent of the absorption, while tier II and III cities accounted for the remaining 22 percent,

The overall absorption during Q1 2024 is led by sustained demand from the 3PL and manufacturing sectors as well as a surge in demand from the FMCG sector.

In addition, the uptake of manufacturing warehouses has significantly contributed to the overall absorption.

Grade A space accounted for 45 percent of the supply and 41 percent of the absorption in Q1 2024.

3PL, the largest constituent of demand, accounted for 36 percent of the overall absorption in Q1 2024. Tier II & III cities witnessed a surge in 3PL absorption

In Q1 2024, Delhi-NCR remained at the top with the highest contribution of 23 percent to total supply, closely followed by Bengaluru and Kolkata with 12 percent and 10 percent respectively.

The tier II and tier III cities together accounted for 24 percent of the total supply.

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