Is Industrial and Warehousing Demand Peaking in India for January-June?
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Synopsis
Discover the soaring demand for industrial and warehousing space in India as new reports reveal record leasing activity in 2025. With a remarkable 33% growth and key players driving the market, this industry is set for an exciting year ahead!
Key Takeaways
- 20 million square feet of leasing activity in H1 2025.
- 33 percent growth in industrial and warehousing demand.
- Major contributors include 3PL players, accounting for 32 percent of demand.
- Key cities leading demand: Delhi-NCR and Chennai.
- Various sectors like engineering and e-commerce also show significant growth.
New Delhi, July 17 (NationPress) With approximately 20 million square feet of leasing activity recorded in the first half of 2025 (January-June), showcasing a remarkable 33 percent growth, the demand for industrial and warehousing space in the top eight cities remains strong, as highlighted in a recent report.
Leading the charge, Delhi-NCR and Chennai accounted for nearly half of the total leasing activity during this period.
Among the eight major cities, Delhi-NCR, Chennai, Mumbai, and Bengaluru experienced impressive demand, each surpassing 2 million square feet in the first half of 2025, according to the findings from Colliers.
Third-party logistics (3PL) providers emerged as the primary contributors to the demand for Grade A warehouses and industrial spaces, making up around 32 percent of the overall demand during this period.
Moreover, demand from various sectors such as 3PL, engineering, e-commerce, automotive, and retail firms saw substantial growth throughout H1 2025. Notably, at the micro-market level, the highest warehousing space uptake was recorded in Bhiwandi (Mumbai) at 3.1 million sq ft, followed by Oragadam (Chennai) at 1.5 million sq ft.
“In the second quarter of 2025, the industrial and warehousing sector registered approximately 11 million sq ft of demand across the top eight cities, reflecting a 52 percent year-on-year increase. This quarter marked the highest gross absorption recorded in several years,” stated Vijay Ganesh, Managing Director, Industrial and Logistics Services at Colliers India.
The growth trajectory is expected to maintain its momentum in the coming quarters, paving the way for a strong performance throughout 2025, Ganesh added.
During the first half of 2025, 3PL players continued to dominate the landscape, accounting for about one-third of the leasing activities.
Simultaneously, notable space uptake was observed in other sectors like engineering, e-commerce, and automotive, with each sector taking up between 2-4 million sq ft during H1 2025.
“While 3PL providers remain at the forefront of demand, sectors like engineering, e-commerce, and automotive have steadily gained ground in recent quarters, each contributing 10-20 percent of the Grade A space uptake in H1 2025,” commented Vimal Nadar, National Director and Head of Research at Colliers India.
Point of View
It is imperative to acknowledge the remarkable growth in the industrial and warehousing sector in India. This sector's resilience and adaptability in the face of changing market dynamics reflect the nation's economic potential. The continued demand from diverse segments showcases a robust trajectory that promises sustained growth and development opportunities.
NationPress
17/07/2025
Frequently Asked Questions
What is the leasing activity for industrial and warehousing in H1 2025?
The leasing activity for industrial and warehousing in the first half of 2025 reached approximately 20 million square feet, reflecting a growth of 33 percent.
Which cities are leading in industrial and warehousing demand?
Delhi-NCR and Chennai are the leading cities, collectively accounting for nearly half of the overall leasing activity in H1 2025.
What percentage of demand is driven by 3PL players?
Third-party logistics (3PL) players contributed to about 32 percent of the overall demand during the first half of 2025.
What sectors are contributing to the growth in demand?
Sectors such as engineering, e-commerce, automotive, and retail are significantly contributing to the growth in demand for industrial and warehousing spaces.
What are the expected trends for the industrial and warehousing sector in 2025?
The growth momentum in the industrial and warehousing sector is expected to continue, with promising performance anticipated in the upcoming quarters.
