Bengaluru leads India's Industrial and Logistics Real Estate surge, leasing hits 5.7 million sq ft in 2025

Bengaluru has become a pivotal player in India's rapidly growing industrial and logistics (I&L) real estate market, with leasing activity hitting 5.7 million square feet during the first three quarters of 2025, according to CBRE South Asia Pvt Ltd.

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Across the country’s top eight cities — including Delhi-NCR, Hyderabad, Mumbai, Chennai, Kolkata, Pune, and Ahmedabad — total I&L leasing surged nearly 28% year-on-year, reaching 37 million square feet between January and September 2025.

Delhi-NCR tops leasing volume

Delhi-NCR topped the market with 11.7 million square feet leased, while Bengaluru and Hyderabad combined for 59% of the total leasing volume.

The growth has been driven by factors such as the expansion of third-party logistics (3PL) providers, the rise of quick commerce, and an increasing emphasis on supply chain optimization by corporations. Companies are increasingly seeking high-quality, Grade A properties that support automation and facilitate efficient last-mile delivery.

In addition to leasing, new supply in the sector reached 23.8 million square feet, with Bengaluru, Chennai, and Mumbai accounting for 62% of the new completions. As demand peaks during the festive season and pending deals continue to close, experts predict that the momentum in India’s logistics real estate market will remain strong through the end of the year.