Industrial & Logistics Sector Records 53.5% YoY Demand Growth in Q3 2024: Savills India

Dailymirror.news,India, October 24th, 2024: The industrial and logistics sector demonstrated remarkable resilience in Q3 2024, achieving an impressive absorption of 17.5 million square feet—up from 11.4 million square feet in Q3 2023, according to the latest report by Savills India, a global real estate advisory firm. This represents a substantial Y-o-Y increase of 53.5%, solidifying India’s status as a burgeoning hub for industrial and logistics operations.  Tier I cities led the charge in absorption, accounting for 14.0 million square feet (80%) of the total, while Tier II and III cities contributed 3.5 million square feet (20%).

This growth was driven primarily by sustained demand from the third-party logistics (3PL) sector, which comprised 38% of total absorption, alongside manufacturing at 16%. Notably, there was a sharp rise in demand from the fast-moving consumer goods (FMCG) and fast-moving consumer durables (FMCD) sectors, contributing 17%.

In addition to strong absorption rates, the sector witnessed a fresh supply of 19.3 million square feet in Q3 2024, reflecting a 9% year-on-year growth compared to Q3 2023. Tier I cities accounted for the majority of this supply, with 16.4 million square feet (85%), while Tier II and III cities contributed 2.9 million square feet (15%).

Q3 2024 vs Q3 2023: Absorption across Tiers

Q3 24 Absorption (Mn sq. ft) Q3 23 Absorption (Mn sq. ft)Y-o-Y change (%)YTD Q3 24 Absorption (Mn sq. ft)YTD Q3 23 Absorption (Mn sq. ft)YTD Y-o-Y change (%)
Overall17.511.453.5%44.834.031.8%
Tier I14.08.957.3%35.426.633.1%
Tier II & III3.52.540.0%9.47.427.0%

Source: Savills India Research

Q3 2024 vs Q3 2023:Supply across Tiers

Q3 24 Supply (Mn sq. ft)Q3 23 Supply (Mn sq. ft)Y-o-Y change (%)YTD Q3 24 Supply (Mn sq. ft)YTD Q3 23 Supply (Mn sq. ft)YTD Y-o-Y change (%)
Overall19.317.79.0%47.545.54.4%
Tier I16.414.116.3%38.035.18.3%
Tier II & III2.93.7-21.6%9.510.4-8.7%

Source: Savills India Research

Q3 2024 vs Q3 2023 Grade Wise Supply & Absorption (%)

 Q3 24Q3 23YTD Q3 24YTD Q3 23
 Grade AGrade BGrade AGrade BGrade AGrade BGrade AGrade B
Supply45%55%54%46%47%53%54%46%
Absorption54%46%52%48%45%55%53%47%

Source: Savills India Research

Grade A spaces accounted for 54% of the total absorption, reflecting changing occupier preferences, especially toward sustainable and ESG-compliant spaces.

Q3 2024 vs Q3 2023: Sector wise Absorption (%)

SectorQ3 24Q3 23YTD Q3 24YTD Q3 23
3PL38%32%35%40%
E-Commerce8%3%7%3%
Manufacturing16%33%20%24%
Retail12%16%9%13%
FMCG/FMCD17%5%17%6%
Others9%11%12%14%

editor daily mirror

Related Posts

OPPO Find X8 Series Launched in India: Redefines Flagship Excellence with Cutting-Edge Innovation

Dailymiorror.News,National, November 21st, 2024: OPPO India announces the launch of OPPO Find X8 Series in India today. A testament to OPPO’s legacy of innovation, the

KL డీమ్డ్-టు-బి యూనివర్సిటీ 2025 కోసం 100% స్కాలర్‌షిప్‌లతో UG & PG ప్రవేశ పరీక్షలకు దరఖాస్తులు ప్రారంభం

డైలీ మిర్రర్ డాట్ న్యూస్,హైదరాబాద్,21 నవంబర్ 2024:భారతదేశంలో ప్రముఖ ఇంజినీరింగ్ , ఉన్నత విద్యా సంస్థగా పేరొందిన KL డీమ్డ్-టు-బి యూనివర్సిటీ, 2025

You Missed

OPPO Find X8 Series Launched in India: Redefines Flagship Excellence with Cutting-Edge Innovation

OPPO Find X8 Series Launched in India: Redefines Flagship Excellence with Cutting-Edge Innovation

KL డీమ్డ్-టు-బి యూనివర్సిటీ 2025 కోసం 100% స్కాలర్‌షిప్‌లతో UG & PG ప్రవేశ పరీక్షలకు దరఖాస్తులు ప్రారంభం

KL డీమ్డ్-టు-బి యూనివర్సిటీ 2025 కోసం 100% స్కాలర్‌షిప్‌లతో UG & PG ప్రవేశ పరీక్షలకు దరఖాస్తులు ప్రారంభం

“BAI URGES TELANGANA GOVERNMENT TO APPROVE PRICE INCREASE FOR BEER SUPPLIERS TO ALIGN WITH RISING COSTS”

“BAI URGES TELANGANA GOVERNMENT TO APPROVE PRICE INCREASE FOR BEER SUPPLIERS TO ALIGN WITH RISING COSTS”

Villagers in Arittapatti Urge MK Stalin to Reject Vedanta’s Tungsten Mining Permit

Villagers in Arittapatti Urge MK Stalin to Reject Vedanta’s Tungsten Mining Permit

Goldmedal Electricals Partners with Pushpa 2: A Strategic Alliance Celebrating Strength and Excellence

Goldmedal Electricals Partners with Pushpa 2: A Strategic Alliance Celebrating Strength and Excellence

Global Star Ram Charan Honors A.R. Rahman’s Request, Visits Kadapa Dargah Amid Ayyappa Deeksha

Global Star Ram Charan Honors A.R. Rahman’s Request, Visits Kadapa Dargah Amid Ayyappa Deeksha