Is Logistics and Industrial Leasing in India Set to Surpass 60 MSF by Year-End?
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Synopsis
Discover how India's logistics and industrial leasing is on track to exceed 60 million square feet by year-end. This report highlights key trends and growth drivers shaping the sector, ensuring it remains a focal point of the economy.
Key Takeaways
- 60 MSF projected gross logistics leasing by year-end.
- Warehousing accounts for 21.9 MSF of total leasing.
- E-commerce sector growth at 158% YoY.
- Engineering and manufacturing leasing reached 9.7 MSF.
- Healthy supply pipeline of 25 MSF of Grade-A warehousing expected.
New Delhi, Sep 13 (NationPress) The total logistics and industrial (L&I) leasing is projected to surpass 60 million square feet (MSF) by the end of this year, establishing a new standard for the industry due to robust demand, as indicated in a report released on Saturday.
According to Cushman and Wakefield, a leading real estate services firm, "In the first half of 2025 (H1 2025), the leasing growth within warehousing and industrial segments has maintained double-digit figures, totaling 30.7 MSF—a remarkable 21.6 percent year-on-year (YoY) increase and 12.1 percent higher than the second half of 2024."
This performance highlights the strong fundamentals of the sector, with leasing activities exceeding 50 MSF annually for the past three consecutive years.
With the momentum remaining robust, the total leasing is anticipated to exceed 60 MSF by the year's end, creating a new benchmark for India’s Logistics & Industrial market.
The report indicates that warehousing has remained the primary contributor, accounting for 21.9 MSF of leasing, which constitutes 71.3 percent, while industrial spaces contributed 8.8 MSF, making up 28.7 percent of total leasing.
From a sectoral standpoint, engineering and manufacturing (E&M) led the overall leasing with 9.7 MSF, representing 32 percent of total absorption and achieving a 37 percent YoY growth.
This growth reflects the expanding role of the manufacturing sector in India's self-reliant economy, supported by infrastructural advancements and favorable policies. Third-party logistics (3PL) operators leased 7.4 MSF, which represents 24 percent share, demonstrating stable growth and indicating market maturity following previous expansion phases, as noted in the report.
The e-commerce sector experienced the most significant annual increase, with a 158 percent YoY growth, reaching 4.6 MSF and capturing a 15 percent share of total leasing, spurred by festive season preparations and last-mile network enhancements.
Abhishek Bhutani, Managing Director, Logistics and Industrial Services India, Head- Gujarat, Cushman and Wakefield, stated, “The performance in H1 emphasizes how India's logistics and industrial sector has transitioned beyond cyclical fluctuations to exhibit structural strength.”
The consistent demand across segments indicates that occupiers are now seeking not only capacity but also efficiency, location, and long-term value. The prominent roles of manufacturing and the resurgence of e-commerce are reshaping supply chain strategies, he added.
With robust demand fundamentals and a healthy supply pipeline of 25 MSF of Grade-A warehousing anticipated over the next 2-3 years, in addition to supportive policy measures, India’s logistics and industrial real estate sector is set to uphold its upward trajectory through 2025, according to the report.
Point of View
It is essential to recognize the transformative journey of India's logistics and industrial sector. With robust performance indicators and increasing investment, this sector is not only growing but also evolving to meet the demands of a rapidly changing market. The focus on efficiency and strategic location underscores its significance in the broader economic framework.
NationPress
14/09/2025
Frequently Asked Questions
What is the expected growth of logistics leasing in India?
The gross logistics and industrial leasing in India is projected to exceed 60 million square feet (MSF) by the end of the year.
Which sector is driving leasing activities?
Warehousing remains the dominant driver, contributing 21.9 MSF of leasing, while industrial spaces account for 8.8 MSF.
How has the e-commerce sector performed?
The e-commerce sector has recorded a remarkable 158 percent YoY growth, reaching 4.6 MSF in leasing.
What role does manufacturing play in this growth?
The engineering and manufacturing sector has shown significant growth, leading overall leasing with 9.7 MSF and achieving a 37 percent YoY increase.
What are the future expectations for the logistics sector?
With a healthy supply pipeline and supportive policy measures, the logistics and industrial real estate sector is expected to maintain its upward trajectory through 2025.
