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India's Warehousing Boom: Record 26.5M Sq Ft Leased Amid Global Trade Fears

India's industrial and warehousing sector is experiencing unprecedented growth with record leasing activity. The first nine months of 2025 saw 26.5 million square feet leased, marking an 11% increase from the previous year. Third-party logistics companies led the demand, accounting for nearly one-third of all leasing activity. Major metropolitan areas including Delhi-NCR, Chennai, and Mumbai dominated the market, collectively representing over 60% of total uptake.

Key Points: India Industrial Warehousing Demand Hits Record High 2025

  • Industrial warehousing demand reaches 26.5 million sq ft with 11% YoY growth
  • New supply outpaces demand with 28.8 million sq ft completions
  • Third-party logistics companies dominate with one-third of leasing activity
  • Delhi-NCR, Chennai, and Mumbai account for over 60% of total demand
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Industrial warehousing demand at record high in 9 months of 2025, up 11 pc: Report

India's industrial warehousing leasing surges 11% to record 26.5 million sq ft in first nine months of 2025, driven by 3PL and e-commerce sectors despite global trade concerns.

"Large deals continue to play a pivotal role in driving the industrial & warehousing demand, driving nearly half of the leasing volumes during 2025. - Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India"

New Delhi, Oct 15

India’s industrial and warehousing demand reached a record high with 26.5 million square feet of leasing in the first nine months of 2025, marking an 11 per cent year-on-year (YoY) growth, a report said on Wednesday.

Real estate services firm Colliers India said that during Q3 CY2025, new completions reached 9.4 million sq. ft, significantly outpacing demand and resulting in a 160-basis-point rise in vacancy levels on a sequential basis. The first nine months of 2025 witnessed a new supply of 28.8 million sq. ft, marking a 6 per cent year-on-year increase.

Grade A space uptake also hit an all-time high in the 9-month period, but demand slowed in the third quarter to 7.0 million sq. ft, marking a 23 per cent year-on-year decline, as global trade frictions made some occupiers cautious.

Nevertheless, the ongoing festive season and spur in warehousing requirements on account of higher e-commerce and electronics sales in the last quarter can push the demand in the last quarter, the report said.

Delhi-NCR, Chennai, and Mumbai collectively accounted for over 60 per cent of the nine-month take-up, with Chennai and Delhi-NCR each surpassing 5 million sq ft, while Mumbai reached 4.2 million sq ft.

Third-party logistics companies dominated occupier demand, accounting for nearly one-third of leasing activity. Engineering followed with 20 per cent, and e-commerce represented 15 per cent, the report noted

"Large deals continue to play a pivotal role in driving the industrial & warehousing demand, driving nearly half of the leasing volumes during 2025. Notably, 3PL and e-commerce segments witnessed notable large-sized transactions, supported by sustained consumption and easing of supply-side constraints," said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

Bhiwandi, Oragadam, Hoskote, Luhari, and Farukh Nagar remained the most active areas in 2025 so far, together accounting for 30 per cent of the demand.

"Looking ahead, despite ongoing trade volatilities, we expect occupier demand to remain firm, supported by sustained domestic consumption, a strong pipeline of under-construction projects, and continued focus on quality assets,” said Vimal Nadar, National Director & Head of Research, Colliers India.

- IANS

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Reader Comments

P
Priya S
While the numbers look impressive, I'm concerned about the 23% decline in Grade A space uptake in Q3. Global trade tensions seem to be affecting our growth momentum. Hope the festive season gives the needed boost!
M
Michael C
The concentration in Delhi-NCR, Chennai, and Mumbai shows we need better infrastructure development in tier-2 cities. States like UP, Gujarat, and MP should get more warehousing investments to balance regional growth.
A
Ananya R
E-commerce driving 15% of demand is no surprise! With festivals like Diwali coming up, online shopping will only increase. This is creating so many jobs in logistics and supply chain management across the country. 🇮🇳
S
Sarah B
The report mentions Bhiwandi, Oragadam, Hoskote as active areas - these are becoming logistics hubs because of better connectivity and lower costs. Smart move by companies to set up warehouses in these locations.
V
Vikram M
While the growth is encouraging, I hope the government ensures that this warehousing expansion doesn't come at the cost of agricultural land and environmental concerns. Sustainable development should be the priority.

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