KOLKATA: Industrial and warehousing demand across India’s top eight cities remained strong in the first half of 2025, with leasing activity reaching approximately 20 million sq ft—a 33% year-on-year increase, according to a recent report.
Delhi NCR and Chennai led the momentum, jointly contributing to nearly 50% of the total leasing volume in H1 2025. Other major cities including Mumbai and Bengaluru also witnessed significant demand, each registering over 2 million sq ft of leased space.
Third-Party Logistics (3PL) firms continued to be the primary drivers of growth, accounting for roughly 32% of the overall demand in Grade A warehouses and industrial facilities. In addition to 3PLs, other sectors such as engineering, e-commerce, automotive, and retail also showed strong leasing activity during the period.
At the micro-market level, Bhiwandi in Mumbai recorded the highest warehouse space uptake at 3.1 million sq ft, followed by Oragadam in Chennai with 1.5 million sq ft.
“The industrial and warehousing sector witnessed around 11 million sq ft of leasing demand in Q2 2025 alone—a 52% year-on-year surge and the highest quarterly gross absorption in recent years,” said Vijay Ganesh, Managing Director, Industrial & Logistics Services at Colliers India. “Delhi NCR accounted for about a quarter of this, with 2.5 million sq ft of Grade A space absorbed, largely driven by major transactions in the Farukhnagar and Kulana micro-markets,” he added.
