Manufacturing space leasing across top 8 cities at 6.6 million in 2020: Report

Chennai and surrounding areas topped the chart with over 36% of absorption driven by pro-active governance, developed manufacturing ecosystem, proximity to multiple seaports, etc.

MUMBAI: Demand for leased manufacturing spaces gained strength across India in 2020 with gross absorption level touching 6.6 million sq ft in top eight cities. Chennai, Pune and Delhi-NCR have accounted for nearly 3/4th of the total leased manufacturing absorption, showed a JLL India report.

Chennai and surrounding areas topped the chart with over 36% of absorption driven by pro-active governance, developed manufacturing ecosystem, proximity to multiple seaports, etc.

Pune stood second with around 20% of manufacturing-built lease supported by strong ecosystem, organised supply and a large immediate catchment of urban conurbation of Pune and Mumbai.

“Built manufacturing spaces for leasing offers several advantages (including but not limited) to faster entry in high-end / globally comparable specifications, CapEx to OpEx conversion, easy approvals for many sectors, etc. Additionally, incentives are available under several buckets for manufacturing in such built space,” said Yogesh Shevade, Head – Industrial Services, India, JLL.

In near to medium term, he believes, the outlook for such flexi, fast and customised (BTS) options in manufacturing is expected to be robust.

The Delhi-NCR market emerged a close third with 18% of such absorption in 2020 backed by strong manufacturing demand from sectors including but not limited to electronics & mobile manufacturing, electrical equipment, white goods, packaging, the report showed.

Ahmedabad, Bengaluru, Mumbai and Hyderabad have also shown strong growth trends driven by sector specific requirements during the year.

Source: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/manufacturing-space-leasing-across-top-8-cities-at-6-6-million-in-2020-report/articleshow/80326744.cms