CBRE Group, world’s largest commercial real estate services and investment firm, today announced the findings of its latest report, ‘India Market Monitor – Q3 2022’. The report highlights the growth, trends, and dynamics across all segments of the real estate sector in India. A major finding was 40% Q-o-Q (18% Y-o-Y growth) rise in Q3 for Industrial and Logistics leasing. Q3 2022 saw steady performance owing to expansion by occupiers and release of pent-up demand, which is manifesting itself despite inflationary trends in the economy.
“Nearly 18% Y-o-Y growth during 9M2022 in leasing activity was observed in the I&L sector on the back of festive season uplift and 3PL players. Owing to the high growth potential, we expect leasing in this sector to remain range-bound.”Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE
The Report also said that leasing activity was expected to remain range-bound at 28-32 mn sq. ft. in 2022, however, supply addition should pick up pace in Q4 to total 18-20 million sq. ft. in the entire year
Delhi-NCR and Mumbai led absorption, together accounting for 57% share of the market. For the 9-month period, 22 mn sq. ft. leasing activity was witnessed which was almost stable on a Y-o-Y basis. A total supply addition of 13 mn sq. ft. was recorded during same 9 month period in 2022.
While the supply addition has remained muted , but is expected to pick up in the coming quarters. Some other notable trends witnessed are:
- 9.2 mn sq. ft absorption recorded in Q3 2022
- Key sectors that dominated leasing included players from the 3PL (50%), engineering & manufacturing (17%), retail (9%), e-commerce (7%) and FMCG (4%) sectors
- Regionally, domestic corporates (77%) dominated space take-up, followed by EMEA corporates (13%)
- Total 2.9 mn sq. ft. supply witnessed in Q3 2022
- 68% was the combined share of Bangalore, Chennai, and Hyderabad in the supply addition in Q3 2022
- Quarterly rental growth was witnessed mainly in Pune, Delhi-NCR, Bangalore and Kolkata
3PL will continue driving leasing activity as the festive season uplifts the market sentiments of retail, e-commerce and manufacturing sectors, which would positively impact space take-up. Despite easing global supply chain pressures, occupiers to continue following ‘just-in-case’ as well as ‘just-in-time’ strategies to remain prepared for any potential risks. The Report also anticipates that holistic policy initiatives such as PM GatiShakti, National Logistics Policy, etc. will transform the sector and bring it at par with global standards.
Read the full report here: http://cbre.vo.llnwd.net/grgservices/secure/India%20Market%20Monitor%20Q3%202022.pdf?e=1667830419&h=444c1a9ea2cc164b6bd26000f6211021