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CONSTRUCTION Leasing of industrial and warehousing spaces across eight major Radha Dhir, CEO & Country Head, India, JLL, said, “The
INDUSTRIAL, WAREHOUSING SPACE LEASING UP 35% IN
2021; NEW SUPPLY RISES 64%: REPORT
performance of institutional investments in the Indian real estate
during 2021 can be summed up in one theme - ‘increasing
cities went up by 35 per cent during 2021 to 35.1 million square
immunity to uncertainty.’ Investments almost doubled Year-on-
Year during the first nine months of 2021 at $2.9 billion. India’s
feet, driven by higher demand from third-party logistics and
e-commerce players, according to Savills India. The leasing stood
third REIT was listed in February 2021 which was oversubscribed
at 26 million square feet in the previous calendar year.
by 7.9 times indicating investor appetite. REIT players continued
Property consultant Savills India highlighted in a report that fresh
at attractive valuations during the year. As the second wave
supply rose 64 per cent to 36 million square feet from 22 million
receded, the office market also showed signs of recovery. The
square feet during the period under review. to raise low-cost debt and use the proceeds to acquire assets
Third-party logistics (3PL) players and e-commerce companies net absorption for Q3 2021 at 5.9 million sq ft, was the highest in
continued to drive warehousing demand, accounting for 62 per the year to date. Given the transaction activity recorded so far in
cent of the total absorption in 2021, followed by manufacturing Q4, the last quarter is expected to be the strongest.”
sector at 14 per cent. “The Indian economy is expected to gain further strength and
Among the major eight cities in India, Delhi-NCR led with the broad-based investment growth on the back of low-interest
highest absorption in 2021 at 8.1 million square feet, followed by environment, continued monetary stimulus, improving revenue
Pune at 6.5 million square feet. visibility across asset classes, and inclusive growth policy. Listing
Mumbai and Bengaluru saw absorptions of 6 million square feet of REITs, distressed opportunities, asset diversification, high growth
and 4.6 million square feet, respectively. data center, and logistics segments will drive the investment
Apart from eight major cities, Savills India reported that leasing of momentum in 2022,” she added.
industrial and warehousing space stood at 8.6 million square feet “Real estate sector remains a critical cog in the wheel in India’s
in 11 tier II, III cities while new supply was at 8.9 million square feet. economic growth story. The sector is well on its way to recovery
The comparative figures of tier II and III cities were not available. and reaching pre-pandemic levels. While market recovery
Savills noted that the rental values remained stable in 2021 across remains on track, it will not be a straight line across the asset
the major cities. classes, as each finds it is next to normal. The office sector is likely
New projects were delivered with improved specifications and to clock a 30-35% Y-o-Y growth in net absorption levels in 2022
of high quality environmental, health and safety (EHS) standards. but will remain much below the highs of 2019. The residential
The market witnessed 4,200-plus acres of manufacturing and segment is expected to reach pre-COVID quarterly sales volumes
warehousing land transactions across tier I and tier II cities. The in 2022 and given the strong momentum may also match the
industrial and logistics sector witnessed investments exceeding pre-demonetization quarterly sales in the latter half of 2022. The
$1.5 billion in 2021. key factor in the pace and rate of recovery will be the prevailing
Continued interest in this asset class was due to its growth potential conditions as there is a looming threat of new variants which
and stable returns. The market is likely to witness continued and may disrupt the growth trajectory,” said Dr. Samantak Das, Chief
growing interest from investors in this asset class in 2022 as well. Economist and Head of Research & REIS (India), JLL.
The overall industrial and warehousing space stock in tier I cities
stood at 266 million square feet at the end of 2021. AGI INFRA LTD ENTERS INTO JOINT DEVELOPMENT Annular Piston PST Clutch F/R Clutch LSD Clutch
Meanwhile, vacancy levels in tier I cities have increased from 8.4 AGREEMENT FOR GROUP HOUSING PROJECT
per cent in 2020 to 9.4 per cent in 2021, the report said. AGI Infra Ltd has entered into a Joint Development Agreement
for the land measuring 8.70 acres situated at Village Daad, H.B
REAL ESTATE SECTOR EXPECTED TO SURPASS $5 BILLION No. 279, Tehsil Ludhiana West, District Ludhiana, Punjab. Besides
FUNDS FLOW IN 2022, SET TO RECOVER LOST GROUND the company has also purchased land measuring 3.60 acres
ACROSS SEGMENTS: JLL adjoining the land under Joint Development Agreement, this
Institutional investments managed to cross the $5 billion mark in making the total land measuring 12.30 acres. This land is acquired
2020, due to large portfolio deals worth $3.2 billion during the last for the construction and development of group housing project.
quarter of the year. However, 2021 witnessed more board-based
recovery with 31 deals during the first nine months as against 19 INDUSTRIAL, WAREHOUSING SPACE ABSORPTION OVER
deals during the same period of 2020. Unless some large portfolio 44 MILLION SQ FT IN 2021: REPORT
deals are not inked at the end of the year, annual investments Industrial and warehousing space absorption stood at 44 million
are expected to be in the $3.8 - 4 billion range in 2021. The year sq ft in 2021 including 35.1 million sq ft from tier I cities and 8.6 Master Cylinder Slave Cylinder Wheel Cylinder PM Valve
2022 is expected to cross USD 5 billion mark, which was witnessed million sq ft from tier II and III cities, showed data from Savills India.
by the Indian real estate annually during the 2017-2020 period, In spite of Covid restrictions and lockdowns impacting construction
according to JLL’s Outlook 2022. activities, India witnessed a fresh supply of 45 million sq ft during
Investors, apart from the office sector, also allocated fresh capital the year where 36 million sq ft was from tier I cities and 8.9 million
in the residential segment which staged a smart recovery, while sq ft from tier II and III cities.
warehousing and data centers continued to attract investments. Similar to 2020, 3PL and e-commerce sectors continued to drive
The retail sector witnessed capital commitments through warehousing demand accounting 62% of the total absorption in
investment platforms that remain bullish on its growth prospects. 2021, followed by the manufacturing sector at 14%.

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