The economic pundits may be projecting the spectre of a serious slowdown spell in the near run (particularly exhibited by the consistent dip in automobile sales since the beginning of the year) but CBRE South Asia’s ‘India Industrial and Logistics Market View, H1 2019’ report has broadly underlined business as usual scenario in the logistics leasing space. As per the report, logistics leasing in the country recorded a hefty 31% annual growth crossing 13 million sq. ft.
Leading metros like Mumbai, Chennai and Bangalore accounted for more than 60% of leasing activity and large-sized deal (over 1,00,000 square feet) shared a sizeable 30 percent of the pie. Jasmine Singh, Executive Director, Advisory & Transaction Services, CBRE India, said, “It is quite interesting to note that the key demand drivers of leasing activity in H1 2019 were 3PL (56%) and engineering & manufacturing (6%) firms. Domestic corporates drove demand with a share of about 85% of leasing as compared to about 67% in H1 2018. We also witnessed new launches to the tune of about 15 million sq. ft. by major developers.”
The report also indicates further firming of rentals in leading pockets: 5-40% in NH-1 and NH-8 in NCR; about 3-24% in Eastern and Western Corridors in Bangalore; about 12-18% in Western and Southern Corridors in Hyderabad; about 5-7% in Western Corridor II and Northern Corridor in Chennai and about 3-6% in Narol in Ahmedabad on a half-yearly basis.