Large deals of over 2 lakh sq ft size account for about 40% of the overall demand in industrial and warehousing space. The 3PL players have a dominant 35% share for the majority of the large ticket transactions. Delhi-NCR tops among cities in terms of space takeup for large-sized deals.

According to Colliers India report, with 25.6 million sq ft of gross leasing in 2024, industrial & warehousing demand across the top five cities remained healthy, witnessing a marginal 2% YoY growth. Although, there was a noticeable dip in leasing activity during the last quarter, strong space uptake in the earlier quarters ensured steady leasing levels during 2024. During the year, Delhi NCR led the demand with 26% share, closely followed by Chennai at 23% share. On a quarterly basis, Q4 2024 saw about 5.5 million sq ft of industrial & warehousing demand across the top five cities. Pune, closely followed by Bengaluru, cumulatively accounted for over half of the quarterly demand.

While Third Party Logistics (3PL) players drove overall demand during the year, and accounted for 33% share in overall leasing, demand from Engineering and Electronics segments gained traction. At a micro market level, Bhiwandi in Mumbai led the leasing activity in 2024 with about 4.5 million sq ft of demand, followed by Chakan-Talegaon in Pune and Oragadam in Chennai. Both micro markets contributed to more than 2.5 million sq ft of demand each in their respective cities. With 22% YoY rise, 2024 saw over 28 million sq ft of new supply, highest in the recent years, indicating improved developer confidence and an optimistic outlook for 2025.

During the year 2024, large deals (≥ 200,000 sq ft) accounted for about 40% of the overall demand. While, with 35% share, 3PL players continued to account for majority of the large ticket transactions. Engineering segment also contributed significantly with about 20% share in large-sized deals. Interestingly, in the Electronics segment, the quantum of large deals rose significantly, ~4.5X times in 2024 as compared to 2023.

Deal size trends in 2024 Grade A demand (million sq ft)

Source: Colliers

Data pertains to Grade A buildings

Note:  Share here represents share of large/mid & small-sized deals in overall leasing for their respective cities

Deals 2024

Note: Data pertains to Grade A buildings of the top 5 cities including Bengaluru, Chennai, Delhi NCR, Mumbai and Pune

Amidst optimistic outlook for 2025, the trend of large ticket-size deals is likely to continue in this year as well.