India’s industrial and warehousing sector witnessed a robust 63% surge in leasing activity during the first half of 2025, reaching a record 27.1 million square feet across eight key cities, according to real estate consultancy CBRE. The upswing was fueled by rising demand from e-commerce firms and third-party logistics (3PL) providers. CBRE reported that 3PL operators accounted for 32% of the total space leased, while e-commerce companies increased their share to 25%.
Demand for industrial and warehousing spaces surged across tier-II cities, signaling continued expansion beyond major metro hubs. Among India’s top eight cities, Delhi-NCR led with 7.3 million sq ft of leasing activity, 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), and Ahmedabad (1.4 million sq ft).
Supply between January and June 2025 reached 16.7 million sq ft, with Bengaluru, Chennai, and Mumbai contributing 57% of the total new stock. Buoyed by strong performance in the first half of the year, market experts remain optimistic about sustained demand into H2 2025.
According to CBRE, rising activity from 3PL providers, e-commerce players, and retailers—driven by the push for faster deliveries and revamped supply chain strategies—is expected to fuel further space uptake in coming months.
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