Kolkata, Oct 15 (UNI) India’s industrial and warehousing sector remained resilient in 2025, with demand across the top 8 markets reaching 26.5 million sq ft in the first nine months, an 11 percent year-on-year growth, a report said today.
Grade A space uptake hit an all-time high in the nine-month period, despite global players remaining cautious amid ongoing trade frictions.
The sustained momentum underscores the sector’s strong fundamentals and ongoing occupier interest across key industrial and warehousing markets.
“The average quarterly leasing of Grade-A facilities across the top eight cities in 2025 has remained strong at around 9 million sq ft, underscoring the sector’s continued resilience. Large deals continue to play a pivotal role in driving industrial and warehousing demand, accounting for nearly half of the leasing volumes during 2025,” said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
Notably, 3PL and e-commerce segments witnessed notable large-sized transactions, supported by sustained consumption and easing of supply-side constraints. Looking ahead, we expect warehousing requirements to pick up pace in the final quarter of 2025, building on the high transaction volumes seen in the first half of the year,” Ganesh said.
However, after one of the best-performing quarters on record in Q2 2025, demand moderated to 7.0 million sq ft in Q3, reflecting a 23 percent YoY decline.
Nevertheless, the ongoing festive season and increased warehousing demand from higher e-commerce and electronics sales in the last quarter may boost demand further.
As in previous years, Delhi NCR, Chennai, and Mumbai together accounted for over 60 percent of total space take-up during the nine-month period.
Chennai and Delhi NCR each recorded over 5 million sq ft of leasing activity, followed by Mumbai with 4.2 million sq ft.
Among occupier segments, Third-Party Logistics (3PL) players dominated, accounting for nearly one-third of total leasing in the first nine months of 2025.
Engineering and e-commerce followed, contributing 20 percent and 15 percent, respectively, to overall Grade A space uptake.
Notably, the e-commerce segment saw a 2.5x increase in space take-up in 2025 compared to the same period last year, driven by select large transactions in key micro markets.
In the first nine months of 2025, new supply reached 28.8 million sq ft, a 6 percent year-on-year increase.
Delhi NCR, Chennai, and Mumbai collectively accounted for nearly two-thirds of this, reflecting strong developer confidence.
Most new completions were concentrated in NH 16 (Chennai), Bhiwandi (Mumbai), and Luhari & Farukh Nagar (Delhi NCR), showing a continued preference for well-connected areas with robust infrastructure.
“Delhi NCR continues to lead the industrial and warehousing market, driving close to one-third of the overall demand and supply, followed by Chennai and Mumbai. At a micro-market level, Bhiwandi (Mumbai), Oragadam (Chennai), and Hoskote (Bengaluru) remained the most active areas by 2025 so far, together accounting for ~30 percent of the demand.
Within Delhi NCR, Luhari and Farukh Nagar witnessed strong traction, particularly from 3PL and e-commerce occupiers. Demand in Chennai continues to be led by the engineering sector, while Mumbai remains dominated by 3PL players.
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.
In Q3 2025, new completions touched 9.4 million sq ft, surpassing demand and leading to a 160-basis-point rise in vacancy levels.
However, rents in key micro-markets remained firm, driven by occupiers’ preference for high-quality, sustainable warehousing facilities.
