Hyderabad: Industrial and logistics (IL) space leasing in Hyderabad increased by 43 per cent to 2.1 million square feet in January-June this year compared to 1.5 mn sq. ft in the corresponding period last year.
e-commerce firms drove leasing with a share of about 48 per cent, followed by third-party logistics (3PL) firms at 23 per cent and engineering and manufacturing units at 11 percent, according to ‘CBRE Industrial and Logistics Figures H1 2023’.
The key transactions in Hyderabad include a large e-commerce leasing of 10 lakh sq. ft in ESR Logistics Park, DHL leased 2.76 lakh sq. ft and a large FMCG player leased 99,000 sq. ft in independent warehouses. Small-sized deal closures dominated space take-up in the six months ending June.
On a pan-India basis, the report said that there was a 35 per cent year-on-year (Y-o-Y) surge in leasing in the IL sector, which stood at 19.1 mn sq. ft across eight cities in the January-June 23 period. The leasing activity is expected to sustain its momentum in the July-December period, which is expected to be partly driven by festive season sales, it said.
“The second half of the year foresees a consistent influx of leasing activities, paving the way for an estimated 32-36 mn sq. ft uptake of IL space. This growth trajectory will be predominantly propelled by the 3PL sector as they continue to implement a 'multipolar' supply chain strategy. The space take-up by engineering and manufacturing firms is also expected to remain strong,” said Anshuman Magazine, chairman and chief executive officer, India, CBRE.
