Kolkata Ranks Fifth in Warehousing and Industrial Space Absorption in H1 2023
Kolkata, August 12, 2023: Kolkata has emerged as a significant player in the warehousing and industrial space sector, witnessing robust demand in the first half of 2023. According to a recent report by JLL India titled “H1 2023 India: Logistics and Industrial State of the Nation,” Kolkata secured the fifth position among the top eight cities in India for net absorption of warehousing and industrial space.
The report highlights that Kolkata recorded a net absorption of 1.3 million square feet of Grade A and B supply in the first half of 2023. This notable achievement solidifies Kolkata’s position in the logistics and industrial sector, demonstrating the city’s increasing significance in catering to the demand for industrial and warehousing facilities.
Leading the chart, Mumbai topped the list with net absorption of 4.26 million square feet of grade A and B supply, followed by Pune with 3.27 million square feet, and Delhi with 2.34 million square feet. Kolkata’s achievement in securing the fifth spot underscores its growing importance in the sector.
Yogesh Shevade, Head of Logistics & Industrial at JLL India, emphasized that the logistics and industrial sector has showcased resilience post-pandemic. He further anticipates an uptick in demand for logistics and industrial leasing in the second half of the year. Shevade also highlighted the potential for upward rental trends in select markets in the near future.
Officials pointed out that Kolkata’s strategic location and connectivity to key markets position it as a prime logistics hub in eastern India. The city’s proximity to crucial markets and its growing presence of large manufacturing and distribution companies have been driving the demand for warehousing and industrial spaces.
The report also highlighted trends in leasing patterns, noting that third-party logistics providers led the demand across the top eight cities with a 43 percent share. The FMCG and retail segment accounted for 15 percent of leasing, while the auto and engineering sectors claimed a 23 percent share. The industrial sector also witnessed a year-on-year rental growth of 6.5 percent in H1 2023, with an average rate of Rs 23 per square foot per month for Grade A spaces.
