How Did India's Industrial and Logistics Real Estate Sector Experience 28% Growth in 9 Months?
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Synopsis
Discover how India's industrial and logistics real estate sector achieved a remarkable 28% growth in just nine months. This article reveals key insights and the driving forces behind this surge, making it a must-read for industry enthusiasts.
Key Takeaways
- The I&L sector saw a 28% YoY growth in 2025.
- Total leasing reached 37 mn. sq. ft. across major cities.
- Delhi-NCR led with 11.7 mn. sq. ft. leased.
- Demand driven by 3PL and quick commerce.
- Domestic corporates contributed 68% of leasing.
New Delhi, Oct 17 (NationPress) The leasing activity in the industrial and logistics (I&L) real estate sector surged by 28 percent year-on-year in the initial nine months of 2025, according to a report released on Friday.
During this period, the total leasing across the leading eight Indian cities -- Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad -- reached 37 million square feet (mn. sq. ft.), compared to 28.8 mn. sq. ft. in the same timeframe in 2024.
According to CBRE, a prominent global commercial real estate and investment firm, Delhi-NCR accounted for the highest share of leasing activity at 11.7 mn. sq. ft., followed by Bengaluru with 5.7 mn. sq. ft. and Hyderabad at 4.6 mn. sq. ft., collectively representing 59 percent of total leasing.
Mumbai and Kolkata recorded leasing activities of 4.2 mn. sq. ft. and 3.8 mn. sq. ft., respectively.
The surge in demand is primarily driven by the expansion of Third-Party Logistics (3PL) providers and the rapid growth of quick commerce, noted Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East, and Africa at CBRE.
Businesses are increasingly prioritizing supply chain optimization and resilience, creating a demand for advanced, high-specification Grade A assets that facilitate automation and minimize last-mile friction, he added.
The report indicates that during these nine months, the supply addition reached 23.8 mn. sq. ft., as institutional investors continued to expand their presence. Bengaluru, Chennai, and Mumbai together accounted for 62 percent of total development completions.
In the July–September quarter (Q3 2025), total I&L leasing amounted to 10.4 mn. sq. ft., with 3PL players holding a 40 percent share, followed by e-commerce at 18 percent and engineering and manufacturing firms at 15 percent, as per the report.
Domestic corporations contributed 68 percent of the total quarterly leasing, while EMEA corporations accounted for 14 percent, the report concluded.
Point of View
I emphasize that the robust growth in the industrial and logistics sector reflects broader economic trends. This growth is a testament to India's evolving supply chain dynamics and the increasing demand for high-quality real estate. Our nation is witnessing a transformation that promises resilience and innovation in logistics.
NationPress
18/10/2025
Frequently Asked Questions
What is the current growth rate of India's I&L real estate sector?
The industrial and logistics real estate sector in India has experienced a growth of 28% year-on-year in the first nine months of 2025.
Which cities are leading in leasing activity?
The top cities for leasing activity include Delhi-NCR, Bengaluru, and Hyderabad, which together account for a significant portion of the total leasing.
What are the main drivers of this growth?
The primary drivers include the expansion of Third-Party Logistics (3PL) providers and the increasing demand for quick commerce services.
How much total leasing occurred in the top eight cities?
Total leasing across the top eight cities reached 37 million square feet in the first nine months of 2025.
What percentage of leasing did domestic corporates contribute?
Domestic corporates contributed 68% to the total quarterly leasing in the industrial and logistics sector.
