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Home » Logistics » India’s logistics and industrial leasing surges, poised to cross 60 MSF in 2025

India’s logistics and industrial leasing surges, poised to cross 60 MSF in 2025

Mumbai emerged as the top performing city, contributing about 23 percent of all leasing in the country, followed by Delhi NCR, Pune, and Chennai. Bengaluru, Hyderabad, and Kolkata also registered steady absorption.
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India’s logistics and industrial real estate market continued its strong growth momentum in the first half of 2025, with leasing activity touching 30.7 million square feet. This represents a year-on-year rise of more than 21 percent and a sequential increase of over 12 percent compared with the second half of 2024. Warehousing remained the dominant growth driver, accounting for nearly three-quarters of the space absorbed, while industrial facilities made up the balance.

Among the sectors fueling demand, engineering and manufacturing companies led the charge, occupying 9.7 million square feet, approximately one-third of the total. Third-party logistics providers followed with close to 7.4 million square feet, while e-commerce firms showed the sharpest expansion, more than doubling their footprint from last year to 4.6 million square feet as they ramped up for festive-season stocking and extended last-mile delivery networks.

Mumbai emerged as the top performing city, contributing about 23 percent of all leasing in the country, followed by Delhi NCR, Pune, and Chennai. Bengaluru, Hyderabad, and Kolkata also registered steady absorption, while Ahmedabad reported the fastest growth rate, nearly tripling its demand compared with the previous year.

With this pace of activity, industry analysts expect gross leasing to cross 60 million square feet by the end of 2025. The surge underscores the rising importance of efficient warehousing and industrial clusters to support India’s expanding manufacturing, e-commerce, and logistics sectors—critical components that also feed directly into maritime trade through increased cargo flows, port activity, and multimodal connectivity.

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