Logistics space leasing up 31% in January-June 2019: CBRE

Last Updated: Tue, Aug 13, 2019 10:48 hrs
FILE PHOTO: Containers are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai

New Delhi: Over 1.3 crore square feet of logistics or warehousing space was leased out across eight major cities in the country during the first half of 2019, with a year-on-year(YoY) growth of 31 per cent, a CBRE report said on Monday.

As per the real estate consultancy firm's report, 60 per cent of the total leasing activity took place in Mumbai, Chennai and Bengaluru. The other cities covered in the survey were Delhi-NCR, Ahmedabad, Kolkata, Pune, and Hyderabad.

Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa for CBRE, said: "While the overall pipeline for the sector is expected to be around 60 million (6 crore) square feet till 2020, at least 22 million (2.2 crore) square feet of this supply is anticipated to be released by leading players."

As per the report, the logistics sector in India is experiencing structural shifts in the form of automation, transformation of supply chains and growing investments.

"Recent policy reforms and infrastructure initiatives, when completed, are likely to create a favourable business environment and position India among the most attractive investment destinations for the logistics industry in the coming quarters," it said.