India’s industrial and warehousing leasing surges 63%: Report

By Admin

30 Jul, 2025

India’s industrial and warehousing sector is experiencing unprecedented growth, with leasing activity skyrocketing by 63% in the first half of 2025. According to a recent report by CBRE, total leasing touched a record-breaking 27.1 million square feet across eight major cities, reflecting strong momentum in the country’s logistics and infrastructure expansion.

E-Commerce and 3PL Lead the Surge

The surge in leasing has been primarily driven by robust demand from e-commerce firms and third-party logistics (3PL) providers. These players are ramping up their warehousing capabilities to enhance delivery speed and optimize supply chains. CBRE’s data shows that 3PL operators took the lead, accounting for 32% of the total space leased, while e-commerce companies increased their footprint to 25%.

Leasing Activity Spreads Beyond Metros

While India’s metropolitan hubs continue to dominate the market, there is notable traction in tier-II cities, signaling a geographic diversification in warehousing demand. Among the top eight cities, Delhi-NCR emerged as the leader with 7.3 million sq ft of leasing activity. It was followed by:

• Bengaluru – 4 million sq ft
  
  

• Hyderabad – 3.6 million sq ft
  
  

• Kolkata – 3.3 million sq ft
  
  

• Mumbai – 2.9 million sq ft
  
  

• Chennai – 2.3 million sq ft
  
  

• Pune – 2.2 million sq ft
  
  

• Ahmedabad – 1.4 million sq ft
  
  

This widespread growth points to the sector’s deeper penetration into emerging markets, reflecting increased investments and infrastructure development.

Supply Growth in Key Cities

Supply has also kept pace with rising demand. Between January and June 2025, the sector saw the addition of 16.7 million sq ft of new stock. Bengaluru, Chennai, and Mumbai were at the forefront, together contributing 57% of the fresh supply. This rapid expansion is not only helping meet current demand but also laying the foundation for future growth.

Outlook for H2 2025

With an already record-setting performance in H1 2025, industry experts remain optimistic about continued momentum in the second half of the year. CBRE projects that the ongoing push for quicker deliveries and revamped supply chain strategies especially by 3PLs, e-commerce companies, and retailers will sustain high levels of leasing activity. The sector is clearly transitioning into a high-growth phase, driven by digital commerce and structural logistics shifts.

Conclusion

India’s industrial and warehousing market is thriving, buoyed by rising digital consumption, logistics innovation, and pan-India infrastructure upgrades. The 63% leap in leasing during H1 2025 is not just a number it reflects the broader transformation of India’s supply chain ecosystem. As we move into the second half of the year, all eyes will be on how this momentum shapes the future of industrial real estate in the country.