India's industrial and warehousing demand strengthens in 2022: Report

NEW DELHI: The year 2022 has been comparatively good for the Indian industrial and warehousing sector as it saw demand improving after a Covid-led slump in economic activities.

In 2022, 24.5 million sq ft of industrial and warehousing was absorbed, up 8 per cent on a yearly basis across the top five metros, said global investment and advisory firm Colliers. Delhi was on the top in terms of absorption.

Notably, it said third-party logistics players remained the top occupier of warehousing space, contributing to about 44 per cent of the total demand in the sector during 2022.

"As consumer demand remains upbeat, third-party logistics players, E-commerce and retail companies are leasing industrial and warehousing space to cater to this growing demand," Colliers said.

Improved market sentiments are expected to keep the momentum going forward.

"The Indian Logistics growth story continues to remain resilient and is further progressing on an accelerated growth trajectory owing to the focus on companies catering to changing consumer behaviour across India," said Shyam Arumugam, managing director, of Industrial and Logistics Services, Colliers India.

"The convenience of shopping/returns, improved UPI adoption, omnichannel retailing, etc. have led to e-commerce demand growth thereby translating into demand for more warehousing capacities especially to augment last-mile connectivity in Tier I and Tier II cities this year," added Arumugam.