According to a report by CBRE, the growth rate of industrial and logistics leasing is likely to slow down to 32-35 million square feet during 2023 due to global headwinds but it is expected to increase 2022 levels and might touch 24-25 sq. ft.
The share of development completions by prominent global/domestic developers is estimated to reach 40% in 2023-24 from 37% during 2021-22, the report said. The demand is majorly driven by 3PL and manufacturing companies.
Anshuman Magazine, Chairman and CEO for India, South-East Asia Middle East and Africa at CBRE stated that the government’s strong capex programme that is aimed at driving investment is currently focused on developing infrastructure and capacity building across sectors and this will be their focus area to generate employment also. He further added that the development will further push large-sized spaces for lease by retails and FMCG firms.
The government’s holistic approach to shaping the logistics sector and bringing it at par with global standards through a comprehensive logistics plan, supply-side interventions and a comprehensive policy on warehousing criteria are expected to diminish the logistics cost to a single-digit of the GDP. This would enable India to figure among the top 25 countries on the Logistics Performance Index by 2030.