India’s industrial and logistics leasing hits record 37 million sq ft in 2025

Strong occupier demand for Grade-A warehouses and a surge in third-party logistics (3PL) expansion push India’s industrial real estate to an all-time leasing high.

India’s industrial and logistics real estate segment has reached a historic milestone, with leasing activity surging 28 percent year-on-year to touch 37 million square feet in the first nine months of 2025. The growth reflects robust occupier demand for high-quality, automation-ready Grade-A facilities across major cities.

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The Delhi-National Capital Region (NCR) led the momentum with 11.7 million sq ft of leased space, followed by Bengaluru at 5.7 million sq ft and Hyderabad at 4.6 million sq ft. Together, these cities contributed nearly 59 percent of India’s total leasing volume, reaffirming their dominance as the nation’s top logistics hubs. Mumbai and Kolkata followed with 4.2 million sq ft and 3.8 million sq ft, respectively.

The boom has been largely driven by the rapid expansion of third-party logistics (3PL) providers and the explosive growth of quick commerce platforms. Companies are increasingly prioritizing efficiency, resilience, and faster last-mile delivery, fueling the demand for sophisticated, Grade-A warehousing assets.

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Supply has also kept pace, with 23.8 million sq ft of new space added between January and September. Bengaluru, Chennai, and Mumbai accounted for 62 percent of new completions, as institutional developers expanded aggressively. In Q3 alone, leasing reached 10.4 million sq ft, with 3PL firms occupying 40 percent of the share, followed by e-commerce at 18 percent and manufacturing at 15 percent. Domestic players dominated with a 68 percent share of activity.