The first half of 2024 witnessed an 8% increase in warehousing and logistics absorption, reaching 16.6 million sq ft, compared to the same period last year, according to a report by Vestian, a US-headquartered workplace solutions firm. However, this figure marks a 26% decline from the second half of 2023, primarily due to a substantial 74% drop in absorption in the NCR region.
Mumbai and Pune led the way, accounting for 63% of the total absorption in the first half of 2024, with southern cities like Bengaluru, Chennai, and Hyderabad contributing 29%. Notably, Mumbai's share surged from 25% in H1 2023 to 41% in H1 2024, fuelled by the growing demand for grade-A warehouses in areas such as Bhiwandi, Panvel, Uran, Taloja, and Ambernath. Meanwhile, NCR's share plummeted from 31% to just 6% during the same period.
Third-party logistics companies dominated the absorption market with a 39% share in H1 2024, up from 26% in H1 2023. The engineering, manufacturing, automobiles and auto components sectors also saw significant gains, with their shares increasing from 16% and 4% in H1 2023 to 22% and 9% in H1 2024, respectively. The sector attracted investments totalling $1.6 billion in H1 2024, making up 42% of the total institutional investment in the real estate sector. (TOI)
