Industrial and logistics leasing in India reached a peak of 39.5 million sq. ft. in 2024, supported by a robust supply of 38.6 million sq. ft. during the year, with Delhi-NCR, Bengaluru, and Kolkata accounting for nearly 60% of the leasing activity. The sector showed resilience, with third-party logistics (3PL) providers driving 41% of the leasing activity, followed by engineering and manufacturing (E&M) firms at 18%. Small-sized transactions under 50,000 sq. ft. dominated leasing volumes, contributing 43%. Leasing activity remained strong in the second half of 2024, with a 17% YoY growth, fuelled by demand from e-commerce companies, quick-commerce operators, and 3PLs.
Looking ahead to 2025, the demand for warehousing is expected to remain strong, driven by the continued dominance of 3PL providers and the expansion of in-city warehousing and quick-commerce concepts. Tier-II cities like Chandigarh, Hosur, and Jaipur are anticipated to become key focal points for warehousing expansion. While new supply is projected to remain steady, cities such as Chennai, Mumbai, and Bengaluru will continue to drive supply additions. Government initiatives supporting India’s manufacturing ecosystem and growing consumer demand are expected to benefit FMCG, retail, and e-commerce sectors. Developers and investors will likely remain active, exploring opportunities in tier-I and tier-II cities.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.