Industrial, warehousing spaces demand rises 63% to record in H1 2025: CBRE

Leasing activity in India’s industrial and warehousing segment surged 63% YoY during H1 2025, reaching a record 27.1 million square feet across eight major cities, according to real estate consultant CBRE. The strong growth was driven by rising demand from third-party logistics (3PL) providers and e-commerce firms, which accounted for a combined 57% of total leasing during the period. CBRE noted that 3PL players took up 32% of leased space, while the share of e-commerce players rose to 25%, reflecting how consumer expectations and supply chain optimisation are reshaping India's logistics landscape.
Delhi-NCR emerged as the top-performing market with 7.3 million sq. ft. leased, followed by Bengaluru (4 million sq. ft.), Hyderabad (3.6 million sq. ft.), and Kolkata (3.3 million sq. ft.). Mumbai, Chennai, Pune, and Ahmedabad also saw strong traction, reflecting nationwide demand. Supply additions during H1 2025 stood at 16.7 million sq. ft., with Bengaluru, Chennai, and Mumbai collectively contributing 57% of the new supply. CBRE expects leasing momentum to remain robust in H2 2025, with 3PL, e-commerce, and retail players continuing to drive demand amid an increasing shift toward premium, sustainable, and tech-enabled facilities. The rise of warehousing interest in tier-II cities also points to the sector’s widening footprint across India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.