India’s industrial and warehousing sector is on a tear — leasing activity hit an all-time high of 27.1 million sq. ft. in the first half of 2025, marking a 63% year-on-year surge, according to CBRE’s latest report. This explosive growth reflects the booming demand from 3PL providers and e-commerce giants, who are rapidly scaling operations to meet rising consumer expectations and enhance supply chain efficiency.
Key Highlights:
- Record Leasing Volume:
- 27.1 million sq. ft. leased across 8 major Indian cities in H1 2025 — highest ever recorded.
- Demand Drivers:
- Third-Party Logistics (3PL): Accounted for 32% of leasing.
- E-commerce Players: Took up 25%, underscoring digital retail’s supply chain expansion.
- Top Performing Markets:
- Delhi-NCR led with 7.3 million sq. ft. leased.
- Bengaluru: 4 million sq. ft.
- Hyderabad: 3.6 million sq. ft.
- Kolkata: 3.3 million sq. ft.
- Other active markets: Mumbai, Chennai, Pune, and Ahmedabad.
- Supply Additions:
-
16.7 million sq. ft. of new warehousing space added.
Bengaluru, Chennai, and Mumbai contributed 57% of the new supply.
- What’s Driving the Trend?
- Rising consumer expectations.
- Supply chain digitisation and consolidation.
- Shift toward premium, tech-enabled, and sustainable facilities.
- Growing warehousing demand in tier-II cities.
- Outlook for H2 2025:
- CBRE forecasts continued leasing momentum, driven by 3PL, e-commerce, and retail sectors.
Insight: The logistics landscape in India is undergoing a structural transformation — with warehousing demand expanding both in scale and geography. For businesses, this is the time to rethink location strategies, adopt automation, and invest in scalable infrastructure.
