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Hyderabad logistics space leasing zooms 16%
Hyderabad logistics space leasing zooms 16%
Third Party logistic firms and engineering & manufacturing players led Industrial and Logistics space take-up during July-Dec period, says CBRE report
Hyderabad: The annual leasing in Industrial and Logistics space stood at 3.7 million sft in the city during 2022, indicating year-on-year increase of 16 per cent compared to last year. During July-December, 2022 period, the space take-up stood at 2.2 million sft while the supply was 1.2 mn sft, in Hyderabad, real estate consulting firm, CBRE South Asia Pvt Ltd said.
According to the findings of its report, 'Industrial and Logistics Figures H2 2022,' Northern Corridor, followed by Western and Southern Corridor are the key micro-markets that led leasing during Jul-Dec period, wherein small-sized deals dominated the absorption.
Third party logistics firms occupied 31 per cent of the space, while engineering and manufacturing and electronics-electricals leased 21 per cent and 20 per cent, as the key sectors driving absorption.
The leasing transactions in the city was led by Samsung with a space take-up of 2.25 lakh sft in an independent warehouse, followed by V-Guard Industries leasing of 2 lakh sft in Sonthalia Logistics Park and Aptar Pharma occupying space of 1.34 lakh sft in an independent warehouse.
Anshuman Magazine, Chairman and CEO - India, CBRE said, "The intent to strengthen supply chain among global and domestic companies drove the leasing activity in 2022. Further, the leasing activity in 2023 is expected to remain range-bound, driven by sustained demand from 3PL, engineering-manufacturing and retail firms. On the supply front, we foresee project completions to exceed the 2022 levels and be in line with space take-up during 2023."
On a pan-India basis, according to the report, Industrial and Logistics sector leasing grew by eight per cent y-o-y to touch 31.6 million sft in 2022 despite global headwinds, and a slowdown in e-commerce demand and dissipation of the post-pandemic need to hold additional inventories. This is the second-highest leasing activity recorded in I&L sector after the 2019 peak of 32 million sft. The total supply in 2022 touched 20.9 million sft.
Delhi-NCR led the absorption with 7.3 million sft, followed by Mumbai and Bangalore with 6.1 million sft and 5.2 million sft in 2022, respectively. The three cities accounted for almost 60 per cent of the leasing activity during the year. All cities recorded stable or increased annual space take-up except Bangalore and Pune.
"We anticipate 3PL firms to drive leasing activity as companies look to shore up their distribution capabilities. Moreover, rental growth is likely to continue in micro-markets driven by high-quality project completions and the supply-demand imbalance," said Ram Chandnani, MD - Advisory and Transactions Services of CBRE India.
