India’s industrial leasing hits record high; Delhi-NCR leads nationwide surge

India’s industrial and warehousing sector witnessed a strong upswing in 2025, with total leasing activity across the country’s top eight cities jumping 28% year-on-year to a record 37 million sq ft during January–September, according to real estate consultancy CBRE.

The previous year saw 28.8 million sq ft of space leased across the same cities—Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad—highlighting a significant acceleration in demand for logistics and industrial assets.

Leading the expansion, Delhi-NCR accounted for 11.7 million sq ft of total leasing during the first nine months of 2025, followed by Bengaluru with 5.7 million sq ft and Hyderabad with 4.6 million sq ft. Together, these three markets contributed nearly 59% of total leasing activity, underscoring their importance as logistics and manufacturing hubs. Mumbai (4.2 million sq ft) and Kolkata (3.8 million sq ft) also registered robust growth.

During the same period, new supply in the industrial and logistics segment touched 23.8 million sq ft, with institutional investor-backed developers driving much of the growth. Bengaluru, Chennai, and Mumbai together accounted for 62% of the new space additions, reflecting the cities’ strong developer pipelines and continued attractiveness for long-term investments.

With strong demand fundamentals, increased institutional participation, and a steady supply of Grade A assets, India’s industrial and logistics real estate market appears set for continued growth in the quarters ahead.