India’s industrial and warehousing sector witnessed unprecedented growth in the first half of 2025, with leasing activity touching 20 million sq ft — a 33% year-on-year increase, according to a new report by Colliers India.
The surge is being driven by strong demand across sectors like Third-Party Logistics (3PL), e-commerce, automobiles, and engineering, particularly in top metro cities.
Key Highlights:
- Record-breaking demand:
- H1 2025 witnessed 20 million sq ft of industrial and warehousing leasing across India’s top 8 cities — a 33% increase YoY.
- Delhi-NCR & Chennai lead the pack:
- Together, these two cities contributed nearly 50% of total leasing activity.
- Top-performing cities:
- Delhi-NCR
- Chennai
- Mumbai
- Bengaluru
(Each recorded over 2 million sq ft of demand)
- 3PL dominance:
- Third-party logistics players contributed to 32% of total leasing, continuing to be the sector's growth engine.
- Sector-wise traction:
- 3PL: ~6.5 mn sq ft
- Engineering, e-commerce, and automobile: Each contributed 2–4 mn sq ft
- Retail sector also showed significant interest
- Micro-market hotspots:
- Bhiwandi (Mumbai): 3.1 mn sq ft
- Oragadam (Chennai): 1.5 mn sq ft
- Retail sector also showed significant interest
- Q2 2025 – The strongest yet:
The second quarter alone saw 11 million sq ft of leasing — the highest quarterly absorption in recent years, marking a 52% YoY growth.
“While 3PL players continue to lead, engineering, e-commerce, and automobile segments are steadily gaining share in Grade A warehousing demand,” — Vimal Nadar, National Director & Head of Research, Colliers India
“The growth trajectory looks solid. We expect robust performance in the upcoming quarters of 2025,” — Vijay Ganesh, MD, Industrial & Logistics Services, Colliers India
