How Did India’s Warehousing and Logistics Absorption Rebound by 64% in July-September?
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Synopsis
The Indian warehousing and logistics sector has shown a stunning recovery in Q3 2025, with a 64 percent increase in absorption. Discover how major cities like Mumbai, Kolkata, and NCR contributed to this growth and what it means for the future of logistics in India.
Key Takeaways
- 64 percent rebound in Q3 2025 absorption.
- Mumbai leads with 47 percent of total absorption.
- Kolkata sees a record 950 percent increase in absorption.
- Focus on E-commerce and 3PL segments drives growth.
- Market optimization reshapes logistics landscape.
New Delhi, Nov 13 (NationPress) The Indian warehousing and logistics industry experienced a remarkable rebound of 64 percent sequentially in the third quarter of 2025 (July-September), achieving an absorption rate of 9.2 million square feet, as reported on Thursday.
Mumbai led the way in national absorption, contributing approximately 47 percent or 4.29 million sq ft, showcasing a substantial quarter-on-quarter increase of 377 percent along with a 10 percent rise year-on-year, according to the report from workplace solutions provider Vestian.
However, the firm noted that despite this impressive growth, the national absorption figures were 36 percent lower compared to the record levels seen in the same quarter the previous year.
The resurgence in demand from occupiers in Mumbai’s micro-markets, particularly Bhiwandi and Panvel, which accounted for nearly 96 percent of the total absorption, significantly contributed to the city's recovery, the report highlighted.
“Following a lackluster previous quarter, the warehousing and logistics sector has clearly demonstrated signs of revival in Q3 2025, with Mumbai, Kolkata, and NCR spearheading absorption,” stated Shrinivas Rao, FRICS, CEO of Vestian.
The surge in occupier demand across critical micro-markets, alongside renewed activity in the E-commerce and third-party logistics (3PL) segments, underscored the growing depth and diversification of the sector.
As occupiers emphasize network optimization and grade-A assets, India’s warehousing and logistics landscape is evolving for enhanced performance in the upcoming quarters, Rao added.
NCR ranked as the second-largest market with 1.28 million sq ft, marking an 83 percent increase quarter-on-quarter, while Chennai achieved 1.13 million square ft, its highest leasing level in seven quarters, reflecting a 151 percent sequential rise and 38 percent year-on-year increase.
Kolkata recorded its highest quarterly absorption ever at 1.26 million sq ft, soaring 950 percent over the previous quarter and 186 percent compared to Q3 2024.
Point of View
It is essential to recognize the resurgence in India's warehousing and logistics sector. The robust growth in major markets reflects a positive trend towards recovery, driven by significant demand in urban areas. This transformation highlights the resilience of the sector, positioning it for stronger performance in the coming quarters.
NationPress
13/11/2025
Frequently Asked Questions
What was the absorption rate in Q3 2025?
India's warehousing and logistics sector achieved an absorption rate of 9.2 million square feet in Q3 2025.
Which city contributed the most to absorption?
Mumbai contributed the highest, accounting for 47 percent of total absorption.
How much did Kolkata's absorption increase?
Kolkata recorded a 950 percent increase in absorption compared to the previous quarter.
What are the main factors driving this growth?
The resurgence in occupier demand, especially in micro-markets like Bhiwandi and Panvel, and renewed activity in E-commerce and 3PL segments are driving this growth.
What does this mean for the future of logistics in India?
The sector is expected to continue evolving, with a focus on network optimization and grade-A assets, leading to stronger performance in upcoming quarters.
