Industrial and warehousing sector absorption increases 21.9% year-over-year

The industrial and warehousing sector in India saw a 21.9% increase in absorption in the first half of 2024, with the 3PL sector driving demand with a 33% share. Tier I cities accounted for 78% of absorption, while Tier II and III cities accounted for 22%. The sector also saw a supply addition of 28.2 million square feet, with 77% concentrated in Tier I cities and 23% in Tier II and III cities. The e-commerce sector is expected to surge further as it adopts new models to expand urban distribution and extend its footprint into tier-II & III locations.