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Leasing of industrial and warehousing spaces in India surged by 63 percent in the first six months of this calendar year, reaching 27.1 million square feet across eight major cities. This growth, primarily driven by strong demand from e-commerce players and third-party logistics (3PL) providers, highlights a reshaping of the logistics landscape due to evolving consumer expectations and supply chain optimization. Delhi-NCR led the leasing activity, followed by Bengaluru and Hyderabad. The trend is expected to continue into the second half of the year, with a focus on premium, sustainable, and tech-enabled facilities, as India's e-commerce market continues its rapid expansion.
The leasing of industrial and warehousing spaces across India's eight major cities increased by 63 percent in the first six months of the current calendar year. This growth brought the total leased area to 27.1 million square feet, driven by stronger demand from e-commerce players and third-party logistics (3PL) providers, according to real estate consultant CBRE. Advertisement
Third-party logistics (3PL) refers to outsourcing logistics operations such as warehousing, transportation, and fulfillment to specialized service providers. E-commerce entities and 3PL players together accounted for over half of the demand in the first half of the year, with 3PL taking 32 percent and e-commerce entities' share increasing to 25 percent.
Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East & Africa, CBRE, noted that the dominance of 3PL and e-commerce showed how quickly changing consumer expectations and supply chain optimization were reshaping the landscape. He also stated that the next wave of growth would be defined by premium, sustainable, and tech-enabled facilities.
Ram Chandnani, Managing Director, Leasing, CBRE India, added that the strong growth in leasing activity, along with steady institutional investments in quality assets, reflected the confidence of both users and developers in India's industrial and logistics sector. He also mentioned that demand for industrial and warehousing spaces is growing in tier-II cities.
India's e-commerce market is experiencing rapid growth, with online shopping expanding beyond major metro cities into tier-two and tier-three cities, significantly driving the demand for logistics and warehousing infrastructure. Government initiatives like the National Logistics Policy (NLP) and PM Gati Shakti are further streamlining the sector and promoting multimodal connectivity.
Among the eight major cities, Delhi-NCR saw the most leasing of industrial and warehousing spaces, at 7.3 million square feet. Bengaluru followed with 4 million square feet, then Hyderabad at 3.6 million square feet, Kolkata with 3.3 million square feet, and Mumbai at 2.9 million square feet. Chennai leased 2.3 million square feet, Pune 2.2 million square feet, and Ahmedabad 1.4 million square feet.
During January-June 2025, the supply of industrial and warehousing spaces reached 16.7 million square feet. Bengaluru, Chennai, and Mumbai contributed 57 percent of the total supply during this period. With a strong performance in the first half of 2025, CBRE expects demand to remain robust in the second half. The consultant forecasts that 3PL, e-commerce, and retail sectors are likely to be the main drivers of space uptake, as they continue to seek shorter delivery timelines and re-evaluate their supply chain models.
Source- PTI
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