New Delhi [India], September 14 (ANI): India’s logistics and industrial real estate sector recorded double-digit growth in the first half of 2025, with total leasing at 30.7 million square feet (MSF) – a 21.6 per cent increase YoY and 12.1 per cent higher than H2 2024, according to Cushman & Wakefield’s latest H1 2025 Logistics & Industrials Marketbeat Report.
The growth is driven by strong demand across warehousing and manufacturing segments, the report added.
The performance underlines the sector’s strong fundamentals, with leasing activity surpassing 50 MSF annually for the last three consecutive years. With momentum holding strong, gross leasing is expected to cross 60 MSF by year-end, setting a new benchmark for India’s Logistics & Industrial market.
According to the report, warehousing remained the dominant driver, accounting for 21.9 MSF of leasing and representing 71.3 per cent, while industrial space contributed 8.8 MSF, making up 28.7 per cent of the total leasing.
From a sectoral perspective, Engineering & Manufacturing (E&M) led overall leasing with 9.7 MSF, accounting for 32 per cent of total absorption and recording a 37 per cent YoY growth.
3PL operators leased 7.4 MSF, representing a 24 per cent share and showcasing stable growth, indicating market maturity after earlier expansion waves.
The E-commerce sector recorded the sharpest annual surge, with 158 per cent YoY growth to reach 4.6 MSF and capture a 15 per cent share of total leasing, driven by festive season stocking and last-mile network expansion.
Abhishek Bhutani, Managing Director, Logistics & Industrial Services India, Head- Gujarat, Cushman & Wakefield, said, “H1 performance reinforces how India’s logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength. The consistency of demand across segments highlights that occupiers are no longer only chasing capacity but also efficiency, location, and long-term value.”
In terms of cities, Mumbai led the leasing activity in H1 2025 with 7.0 MSF, accounting for a 23 per cent share, recording a remarkable 131.3 per cent YoY growth, driven by strong warehousing and industrial demand. Ahmedabad, though smaller in absolute volume at 1.7 MSF, posted the highest YoY growth at an impressive 192.2 per cent, making up 5.4 per cent share, underscoring its rising prominence in the logistics and industrial landscape.
Delhi NCR recorded 5.1 MSF with 17 per cent share, and Pune reported 4.5 MSF with 15 per cent share, leading the overall leasing. Chennai registered 4.4 MSF with 14 per cent share, Bengaluru 3.3 MSF with 11 per cent share, Hyderabad 2.7 MSF with 9 per cent share, and Kolkata 2.0 MSF and 7 per cent share, also recorded steady leasing activity.
The report added that a healthy supply pipeline of 25 MSF of Grade-A warehousing is expected over the next 2-3 years, and supportive policy measures, driven by strong demand, are expected to maintain India’s logistics and industrial real estate sector’s upward trajectory through 2025. Growth will be driven by sustained manufacturing expansion, e-commerce penetration into Tier-II and Tier-III cities, and continued adoption of technology in supply chain management, the report added. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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