In H1 2023, India's industrial and warehousing sector absorbed 22.4 million sq. ft., an increase of 7% compared to the first half of 2022. Tier I cities accounted for 75% of the total absorption, while Tier II and III contributed the remaining 25%. Savills India's research shows that the demand for Grade A warehousing and ready fitted-out factory space has increased due to the emphasis on quality and compliance. Meanwhile, Tier II and III cities have witnessed significant growth as prominent hubs for sourcing and consumption, easing distribution.
