The global real estate consultant’s ‘2023 India Market Outlook’
report said that the industrial
and logistics ( I&L) supply forecast is expected to exceed
2022 levels and touch 24-26 mn sq ft in 2023
CBRE South Asia in its report, ‘2023 India Market Outlook’ says, the growth rate could slow as occupiers
will align their portfolio strategies with global headwinds. This would
result in absorption ranging between 32-35 mn. sq. ft., a 1-5% Y-o-Y growth in
2023. The report highlights key trends and projections for the Indian real
estate sector this year.
The demand is expected to be predominantly driven by
3PL and engineering & manufacturing occupiers. The report points to
anticipated heightened interest from FMCG, retail and electronics &
electrical firms. Moreover, the share of large-sized deals ranging from 32-35%
is expected in 2023.
Anshuman Magazine, Chairman & CEO –
India, South-East Asia, Middle East & Africa, CBRE, said,
“We believe strong macroeconomic fundamentals and domestic consumption
will overcome the impact of an impending slowdown….The I&L sector occupiers
are likely to move towards achieving operational efficiencies and rationalise
cost in a multi-user facility, and this is expected to push the take-up of
large-sized spaces hereon. Omnichannel retail, along with need for urban
fulfilment centres would drive leasing by retail and FMCG firms”.
Supply chain diversification to impact
leasing activity: There would be a continued focus on ‘just-in-case’ buffer
stocks to drive warehousing activity. Demand centers would see more robust
leasing as several occupiers prefer to locate their warehouses closer to
consumption hubs to reduce transportation costs.
Need
for speedy deliveries to heighten in-city warehousing demand: Focus on faster deliveries and moving close to
end-users have increased the need for smaller I&L spaces within the city.
This trend is expected to fuel growth of multi-level warehouses in the suburbs
of tier – I locations, which would help solve the Urban logistics (last mile
logistics) puzzle.
Knight
Frank India observes that 11.3 million square feet (msf) of office space was
transacted in January-March 2023 (January – March). Bengaluru remained the foremost market with a total
leasing of 3.5 msf of office space, followed by NCR which recorded 2.6 msf and
Mumbai at 2.2 msf of gross leasing in the first three months of the calendar
year 2023. The three largest markets accounted for 73% of the area transacted
and saw positive growth in YoY terms.