The industrial and logistics sector demonstrated remarkable resilience in Q3 2024, achieving an impressive absorption of 17.5 million square feet—up from 11.4 million square feet in Q3 2023, according to the latest report by Savills India, a global real estate advisory firm. This represents a substantial Y-o-Y increase of 53.5%, solidifying India’s status as a burgeoning hub for industrial and logistics operations. Tier I cities led the charge in absorption, accounting for 14.0 million square feet (80%) of the total, while Tier II and III cities contributed 3.5 million square feet (20%).
This growth was driven primarily by sustained demand from the third-party logistics (3PL) sector, which comprised 38% of total absorption, alongside manufacturing at 16%. Notably, there was a sharp rise in demand from the fast-moving consumer goods (FMCG) and fast-moving consumer durables (FMCD) sectors, contributing 17%.
In addition to strong absorption rates, the sector witnessed a fresh supply of 19.3 million square feet in Q3 2024, reflecting a 9% year-on-year growth compared to Q3 2023. Tier I cities accounted for the majority of this supply, with 16.4 million square feet (85%), while Tier II and III cities contributed 2.9 million square feet (15%).
