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H1 2024 witnessed an absorption of 16.6 Mn sq ft, showcasing an increase of 8% over the same period a year earlier. However, it reduced by 26% when compared to H2 2023. The reduction could be attributed to a significant dip of 74% in NCR?s absorption. Mumbai and Pune together accounted for 63% of the total absorption in H1 2024, followed by southern cities (Bengaluru, Chennai and Hyderabad) at 29%. Mumbai?s share saw an increase from 25% in H1 2023 to 41% in H1 2024, the growth can be attributed to an increase in demand for grade-A warehouses in areas such as Bhiwandi, Panvel, Uran, Taloja, and Ambernath. NCR witnessed a significant decline in its share from 31% to 6% in the same period. Furthermore, Chennai reported absorption of 1.5 Mn sq ft in H1 2024, registering an increase of 191% over H1 2023 due to the low base effect. 3PL (3rd Party Logistics) companies dominated absorption with 39% share in H1 2024. The share has increased from 26% in H1 2023. Similarly, the share of Engineering & Manufacturing and Automobiles & Auto Components sectors also saw an increase from 16% and 4% in H1 2023 to 22% and 9% in H1 2024, respectively. The sector received investments worth USD 1.6 Bn in H1 2024, accounting for 42% of the total institutional investment received in the real estate sector. As major economies of the world started expanding again and the participation of foreign investors increased in the Indian warehousing sector, investments in H1 2024 were equal to 1/3rd of the total institutional investment received in the past four years. Moreover, investments increased by 4.5X in H1 2024 compared to H1 2023. Shrinivas Rao, FRICS, CEO, Vestian said, ?As participation of foreign investors increased, availability of funds eased in the sector. Moreover, recent government announcements to boost infrastructure developments is likely to reduce logistics costs from 8-9% to 5-6% of the GDP, which in turn will lead to an increase in real estate activities in the warehousing sector.?