Leasing of Industrial & warehousing spaces during April-June fell 12 per cent year-on-year to 40 lakh square feet area across five major cities mainly due to lower demand in Delhi-NCR and Chennai, according to Colliers.

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Real estate consultant Colliers India released its India industrial and warehousing market snapshot for the April-June quarter of this calendar year, showing the gross leasing in April-June across five cities fell 44% from the previous quarter.

As per the data, leasing of industrial and warehousing space in Pune region rose 15 per cent to 10 lakh (1 million) square feet during April-June period.

Mumbai also saw a 12 per cent increase in demand to 9 lakh (0.9 million) square feet in the second quarter of this calendar year.

The leasing in Bengaluru went up 17 pc to 7 lakh (0.7 million) square feet during April-June.

However, the demand remained subdued in Chennai and Delhi-NCR.

The absorption of industrial and warehousing space in Delhi-NCR fell sharply by 49 per cent to 7 lakh (0.7 million) square feet, while the demand dropped 28 per cent in Chennai to 7 lakh (0.7 million) square feet during the quarter ended June.

Third party logistics (3PL) players were major drivers of demand with a share of 29 per cent in total leasing, while engineering and e-commerce firms contributed 14 per cent each in the overall leasing across five cities.

In terms of new supply, it declined 11 per cent year-on-year to 49 lakh (4.9 million) square feet during the second quarter of 2023.

Delhi-NCR witnessed highest new supply at 26 lakh (2.6 million) square feet, followed by 6 lakh (0.6 million) square feet each in Bengaluru and Pune.

The fresh supply in Chennai and Mumbai stood at 7 lakh (0.7 million) square feet and 4 lakh (0.4 million) square feet, respectively.