New Delhi, Oct 15 (NationPress) India’s demand for industrial and warehousing has soared to unprecedented levels, achieving a total leasing of 26.5 million square feet in the initial nine months of 2025, reflecting an impressive 11 percent growth year-on-year (YoY), according to a report released on Wednesday.

Real estate services provider Colliers India reported that in Q3 CY2025, new completions hit 9.4 million sq. ft, significantly exceeding demand and causing a sequential increase of 160 basis points in vacancy rates. The first three quarters of 2025 also saw a fresh supply of 28.8 million sq. ft, which is a 6 percent YoY rise.

Furthermore, the uptake of Grade A spaces reached an all-time high during this period, although demand in the third quarter slowed to 7.0 million sq. ft, a 23 percent YoY decline due to caution among occupiers amid global trade tensions.

Nonetheless, the festive season and increased warehousing needs driven by rising e-commerce and electronics sales in the final quarter could bolster demand, as noted in the report.

Regions including Delhi-NCR, Chennai, and Mumbai collectively represented over 60 percent of the leasing activity during the nine-month timeframe, with Chennai and Delhi-NCR exceeding 5 million sq. ft and Mumbai at 4.2 million sq. ft.

Third-party logistics firms dominated the demand landscape, accounting for nearly one-third of the leasing operations. The engineering sector followed with 20 percent, while e-commerce took up 15 percent, as highlighted in the report.

“Large transactions continue to be crucial in propelling the industrial and warehousing demand, contributing nearly half of the leasing volumes in 2025. Notably, the 3PL and e-commerce sectors have registered significant large-scale deals, backed by consistent consumption patterns and alleviation of supply-side issues,” stated Vijay Ganesh, Managing Director, Industrial & Logistics Services at Colliers India.

Areas such as Bhiwandi, Oragadam, Hoskote, Luhari, and Farukh Nagar have emerged as the most active locations in 2025, collectively accounting for 30 percent of the demand.

“Looking forward, despite ongoing trade uncertainties, we anticipate that occupier demand will remain robust, supported by sustained domestic consumption, a substantial pipeline of under-construction projects, and an ongoing emphasis on quality assets,” remarked Vimal Nadar, National Director & Head of Research at Colliers India.