Gross leasing of industrial and warehouse space in five cities increased by 11% to 6.2 million square feet

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As per the data, the gross leasing of industrial and warehousing space fell in Bengaluru to 0.9 million square feet in January-March 2022 from 1.5 million square feet in the year-ago period.

Chennai also saw fall in leasing to 0.7 million square feet from 0.8 million square feet. Pune too witnessed a fall in leasing activities to 1.6 million square feet from 1.8 million square feet.

In Delhi-NCR, the leasing grew to 1.7 million square feet from 1.2 million square feet, while in Mumbai the leasing rose to 1.3 million square feet during January-March 2022 from 0.3 million square feet in the corresponding period of the previous year.

"Demand for Grade A spaces remained robust with healthy take-up witnessed this quarter across key cities with NCR market leading the space take-up. Growing concerns about rising construction costs have exerted upward pressure on rents quoted for upcoming developments across markets," said Shyam Arumugam, Managing Director, Industrial and Logistics Services, Colliers India.

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The developers are now looking to cater to build-to-suit demand keenly as opposed to speculative supply addition traditionally due to this increased input cost scenario, he said.

"The trend is expected to continue in the next few quarters as logistics and e-commerce players take up larger spaces in top cities as they scale up their operations in Tier-I cities," Arumugam said.

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