AgenciesMUMBAI: Demand for leased manufacturing spaces gained strength across India in 2020 with gross absorption level touching 6.6 million sq ft in top eight cities. Chennai, Pune and Delhi-NCR have accounted for nearly 3/4th of the total leased manufacturing absorption, showed a JLL India report.
Chennai and surrounding areas topped the chart with over 36% of absorption driven by pro-active governance, developed manufacturing ecosystem, proximity to multiple seaports, etc.
Pune stood second with around 20% of manufacturing-built lease supported by strong ecosystem, organised supply and a large immediate catchment of urban conurbation of Pune and Mumbai.
“Built manufacturing spaces for leasing offers several advantages (including but not limited) to faster entry in high-end / globally comparable specifications, CapEx to OpEx conversion, easy approvals for many sectors, etc. Additionally, incentives are available under several buckets for manufacturing in such built space,” said Yogesh Shevade, Head – Industrial Services, India, JLL.
In near to medium term, he believes, the outlook for such flexi, fast and customised (BTS) options in manufacturing is expected to be robust.
The Delhi-NCR market emerged a close third with 18% of such absorption in 2020 backed by strong manufacturing demand from sectors including but not limited to electronics & mobile manufacturing, electrical equipment, white goods, packaging, the report showed.
Ahmedabad, Bengaluru, Mumbai and Hyderabad have also shown strong growth trends driven by sector specific requirements during the year.
Chennai and surrounding areas topped the chart with over 36% of absorption driven by pro-active governance, developed manufacturing ecosystem, proximity to multiple seaports, etc.
Pune stood second with around 20% of manufacturing-built lease supported by strong ecosystem, organised supply and a large immediate catchment of urban conurbation of Pune and Mumbai.
“Built manufacturing spaces for leasing offers several advantages (including but not limited) to faster entry in high-end / globally comparable specifications, CapEx to OpEx conversion, easy approvals for many sectors, etc. Additionally, incentives are available under several buckets for manufacturing in such built space,” said Yogesh Shevade, Head – Industrial Services, India, JLL.
In near to medium term, he believes, the outlook for such flexi, fast and customised (BTS) options in manufacturing is expected to be robust.
The Delhi-NCR market emerged a close third with 18% of such absorption in 2020 backed by strong manufacturing demand from sectors including but not limited to electronics & mobile manufacturing, electrical equipment, white goods, packaging, the report showed.
Ahmedabad, Bengaluru, Mumbai and Hyderabad have also shown strong growth trends driven by sector specific requirements during the year.
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