The gross absorption in the top 5 cities at 6.2 mn sq feet shows an 11% rise from Q1 2021. The activities in Grade A industrial and warehousing facilities continue to potent in Q1 2022. According to a Colliers research, increased leasing in Delhi-NCR and Mumbai drove the demand.
Vacancy in the Grade A industry also reduces in the quarter, symbolizing the healthy demand environment in the sector. The demand was driven by vital warehousing demand from third-party logistics players, amid strong consumer demand in the sectors.
Third-party logistics companies accounted for over half of gross absorption, followed by the Engineering and Automobile sectors, accounted for 17 percent and 12 percent, respectively.
Overall, grade A supply in the top five cities fell 16 percent year over year to around 6.4 million square feet. Vacancy fell during the quarter due to lower supply and strong leasing. Grade A vacancy rates fell to 9.8% at the end of Q1 2022, down from 11.8 percent at the end of Q4 2021. Strong lease activity in Delhi-NCR, Mumbai, and Pune drove this trend.