The Manufacturing Sector: Growth Story of India

IN MANUFACTURING SECTOR 10 .

SUB SECTOR WISE LEASING WITHIN E&M SECTOR (2017-22)

REAL ESTATE BENEFITS WITH RISING ACTIVITY

1%

22%

14%

13%

10% 7%

3% 2%

28%

Activities in the commercial office real estate market often mirrors the growth trend seen across multiple sectors present in the country. Over the last 5-6 years, gross lease volume (GLV) has suggested the rising activity within the Engineering & Manufacturing (E&M) space, particularly since the PLI scheme was introduced. Occupiers within the E&M space have pursued active leasing of office space across the top-8 cities in India. As of the most recent two years (2021-22), the E&M sector contributed a significant 15-18% share in the overall leasing volume, which is the highest leasing done by E&M in history. During 2017-18 period, this share used to be not more than 6% on average.

Electronic Equipment

Chip Manufacturing

Automobile

Chemical

Precision Engineering

FMCG

Medical Devices

Pharmaceuticals

Others

PAN India E&M Share of GLV (msf) E&M’S RISING SHARE IN OFFICE LEASES ACROSS TOP 8 CITIES

Source: C&W Research

20.0%

80

72

18%

18.0%

69

70

16.0%

60

14.0%

52

15%

49

49

47

50

12.0%

10.0%

40

CITY WISE LEASING SHARE BY E&M SECTOR (2017-22)

10%

8.0%

30

8%

6.0%

6%

20

6%

12% 8% 7% 3% 1%

4.0%

19%

25%

25%

10

2.0%

0

0.0%

2017

2018

2019

2020

2021

2022

GLV (msf)

E&M share

Source: C&W Research

Bengaluru

Delhi NCR

Mumbai

Hyderabad

Pune

Chennai

Kolkata

Ahmedabad

In last five years, chip manufacturing & electronic equipment took almost 34% share, becoming the largest two E&M sub-sectors driving demand. Almost 70% of overall E&M sector’s office demand were concentrated in three major cities of Bengaluru, Delhi NCR, and Mumbai.

Source: C&W Research

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Cushman & Wakefield

The Manufacturing Sector Growth Story of India

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