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Leasing demand for manufacturing space up; expected to touch around 16 million sq ft by 2024: JLL
JLL said that total leasing of manufacturing spaces has increased 4.5 times, from 3.2 million sq. ft in 2020 to 13.8 million sq. ft in 2023
Leasing demand for manufacturing space has increased and is projected to touch approximately 16 million sq ft by the end of 2024, JLL India said in a report.
In its report titled ‘Make in India 2.0: Catalyst for Manufacturing Growth,’ JLL said that total leasing of manufacturing space has increased 4.5 times, from 3.2 million sq. ft in 2020 to 13.8 million sq. ft in 2023.
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Within the manufacturing segment, industries that are leading the leasing trend include engineering, automotive, and electric vehicle sectors that account for almost 70% of the leasing in 2023. Electronics and white goods manufacturing take up approximately 14% of the share, the report said.
Other sectors that made a mark in leasing spaces include renewable energy, packaging, life sciences, consumer goods, FMCG and medical devices among others.
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“Leased manufacturing spaces provide the fastest real estate entry routes to manufacturers in most non-polluting industries in India. Ready and built-to-suit leased factories also provide the ‘capex-light’ advantage to manufacturers as the cost of land and buildings is outsourced to developers, acting as a risk mitigation tool,” said Yogesh Shevade, head of Logistics & Industrial, India, JLL.
“India has emerged as a significant alternative in the regionalization of manufacturing supply chain in the world. Additionally, the huge consumer base of almost 18% of world’s population, makes India a favorable destination for most manufacturing companies,” said Shubhendu Kumar, Director, Miebach Consulting Group.
India plans to become a $1 trillion export economy by 2030 which will be led by the manufacturing sector. In fiscal year 2023, manufacturing exports reached an all-time high of $447.46 billion.
