Industrial & Logistics Leasing Up 40% YoY Across Top 8 Cities, Touches 12.1 MSF in Jan–Mar 25

New Delhi, April 23, 2025: Real estate consulting firm CBRE South Asia Pvt. Ltd has announced the findings of its report, ‘India Market Monitor Q1 2025 – Industrial & Logistics’. The report indicates that leasing in the Industrial & Logistics (I&L) sector grew by approximately 40 per cent year-on-year (YoY) in the January- March 2025 period. The total leasing across the top 8 Indian cities (Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, Ahmedabad) stood at 12.1 million square feet (msf).

Delhi-NCR, Hyderabad, and Bengaluru collectively accounted for three-fifths of leasing share during the January-March 2025 period. Delhi-NCR recorded the highest leasing share (~30 per cent) in total space take-up during this period at 3.7 msf, followed by Hyderabad at 1.9 msf (~15 per cent share) and Bengaluru at 1.7 msf (~14 per cent share). Pune & Chennai accounted for ~13 per cent and ~8 per cent share, respectively, in the total leasing during the quarter.

During the January-March 2025 period, 3PL players accounted for a 31 per cent share in the total leasing, followed by e-commerce players with a 28 per cent share. Notably, leasing by e-commerce players witnessed more than 3x YoY growth. The engineering and manufacturing sector accounted for 17 per cent share in leasing, while the auto and ancillary segment contributed 8 per cent, and the fast-moving consumer goods (FMCG) sector accounted for ~5 per cent share in the total quarterly leasing.

The supply addition from January-March 2025 recorded a substantial YoY growth of ~57 per cent as institutional investor-backed developers continued to expand their footprint. The total supply during this period stood at 12.4 msf, with Mumbai, Bengaluru, and Chennai collectively accounting for 69 per cent of the new supply.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “India’s Industrial and Logistics sector continues to exhibit robust and sustained growth, underpinned by strong demand from 3PL players and e-commerce platforms. The first quarter of 2025 has recorded healthy leasing and supply volumes. As India continues to diversify its industrial base and improve infrastructure, we expect sustained demand from a wider spectrum of occupiers, positioning the country as a regional powerhouse in the global supply chain.”

Ram Chandnani, Managing Director, Advisory & Transaction Services, India, said, “The leasing activity in Q1 2025 reaffirms the strong fundamentals of India’s Industrial and Logistics market. With growth in leasing activity and active participation from both domestic and international occupiers, we are seeing a clear uptick in investments and long-term commitments. This momentum is further supported by rising interest from global corporations—particularly from the EMEA and American regions—underscoring India’s strategic importance as a fast-emerging logistics and distribution hub in the Asia-Pacific region.”

Outlook

• Following the positive trajectory observed in the first quarter, India’s I&L sector is expected to maintain strong leasing momentum in 2025.
• This anticipated growth is expected to be underpinned by the infusion of high-quality supply, robust demand for distribution centres and warehousing facilities, and the accelerated expansion of e-commerce leasing, particularly within the quick commerce segment.
• The 3PL sector is poised to lead I&L leasing activity; however, a diversification of leasing contributors is also anticipated, with sectors such as E&M, FMCG, and e-commerce likely exhibiting substantial growth.
• On the supply side, we anticipate that the proportion of projects completed by institutional investor-backed developers will continue to grow in the coming quarters as they expand their footprint to capitalise on robust demand.