New Delhi: India’s warehousing and logistics sector saw a strong rebound in Q3 2025 (July–September), with absorption rising 64% sequentially to 9.2 million sq ft, according to a report by workplace solutions firm Vestian.
Mumbai led the surge, contributing 47% of total absorption at 4.29 million sq ft—a sharp 377% jump quarter-on-quarter and a 10% rise year-on-year. Despite the recovery, Vestian noted that nationwide absorption was still 36% lower than the record levels seen in the same quarter last year.
The report attributed Mumbai’s recovery to renewed demand in Bhiwandi and Panvel, which together accounted for nearly 96% of the city’s activity.
“The warehousing and logistics sector has shown clear signs of revival in Q3 2025, with Mumbai, Kolkata and NCR driving growth,” said Shrinivas Rao, FRICS, CEO of Vestian.
He added that increased occupier interest across key micro-markets, supported by renewed momentum in E-commerce and 3PL segments, reflects the sector’s expanding depth and diversification. With occupiers prioritising network optimisation and grade-A facilities, the sector is positioned for stronger performance in the coming quarters.
NCR was the second-largest market with 1.28 million sq ft, an 83% QoQ rise. Chennai logged 1.13 million sq ft—its highest leasing activity in seven quarters—up 151% sequentially and 38% YoY. Kolkata recorded its best-ever quarterly absorption at 1.26 million sq ft, registering a 950% jump QoQ and a 186% increase over Q3 2024.
