by THO
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.
