Is India’s Warehousing Stock Set to Exceed 610 Million Sq Ft by 2025 with Tier 2 Cities Booming?
Synopsis
In a remarkable growth trajectory, India's warehousing stock has surged to 610 million sq ft by 2025, with tier 2 cities emerging as new hotspots. This trend signals a shift in logistics and manufacturing dynamics, highlighting the country's potential to evolve into a global logistics hub.
Key Takeaways
610 million sq ft of warehousing stock in 2025.
Over half is premium Grade A space .
Logistics and e-commerce lead the demand.
Tier 2 cities are growing rapidly.
Automation will transform warehouses by 2030 .
Mumbai, Feb 5 (NationPress) The warehousing stock in India has reached 610 million square feet in 2025, with over half of this comprising premium Grade A space, as indicated by a report released on Thursday.
According to the JLL report, institutional-backed Grade A assets now constitute 38 percent of quality stock, fostering standardised development, upgraded specifications, and attracting global occupiers.
Logistics (3PL) and e-commerce are at the forefront of storage demand, while light manufacturing—driven by sectors like automotive, engineering, and electronics—is on the rise, indicating a shift in occupier profiles.
The leading eight tier 1 cities continue to dominate, controlling 82 percent of the total stock at 498 million sq. ft., whereas 14 emerging tier 2 cities account for 112 million sq. ft. of stock.
As India aims for 850 million sq ft of warehousing stock by 2030, the sector is projected to experience a convergence of geographic diversification, institutional investment, and automation integration, transforming basic storage facilities into technology-driven fulfillment ecosystems, according to the report.
“We are witnessing significant growth trends in warehousing in tier 2 cities alongside tier 1 cities. While the major metros still dominate with 82 percent of the market share, it's promising to see cities like Lucknow and Kochi absorbing over one million sq. ft. each, driven by rapidly expanding consumption demand,” stated Yogesh Shevade, Head – Logistics and Industrial, India, JLL.
Thanks to automation, warehouses are evolving into smart facilities, with projections indicating that automation could grow from less than 10 percent to three-quarters by 2030.
While tier 1 cities experienced a net absorption of 55 million sq. ft. in 2025, tier 2 cities reported a net absorption of 12 million sq. ft., reflecting occupiers’ interest in delving deeper into India’s urban demand to enhance operational capabilities.
“In this new era, operational efficiency, sustainability, and advanced automation will not only be competitive advantages but will form the very foundation supporting India’s rise as a global logistics powerhouse,” the report emphasized.
Point of View
It's clear that India's warehousing landscape is evolving rapidly. While tier 1 cities maintain a stronghold, the potential growth in tier 2 cities indicates a broader economic shift. This trend, driven by technological advancements and changing consumer demands, positions India favorably on the global logistics map. As we witness these developments, it’s crucial to maintain a balanced view, recognizing both opportunities and challenges ahead.
NationPress
12 May 2026
Frequently Asked Questions
What is the current warehousing stock in India?
As of 2025, India's warehousing stock has reached 610 million square feet.
What percentage of warehousing stock is Grade A space?
More than half of the warehousing stock is classified as premium Grade A space.
Which sectors are driving storage demand?
Logistics, e-commerce, and light manufacturing sectors are leading the demand for storage.
How are tier 2 cities performing in warehousing?
Tier 2 cities are witnessing significant growth, with 112 million sq. ft. of warehousing stock.
What future trends are expected in India's warehousing sector?
The sector is projected to integrate more automation, geographic diversification, and institutional investments.
