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Leasing of industrial and warehousing spaces in India saw a 22% increase year-on-year during the July-September period, driven by strong demand from the manufacturing sector, e-commerce firms, and third-party logistics (3PL) operators, according to Savills India. Tier-I cities dominated the activity, contributing 84% of leased space, while Tier-II and III cities accounted for the remainder. Total leasing for the first nine months of 2025 reached 55.3 million sq ft, marking a 23.4% increase from last year, while new supply also grew steadily, reflecting continued confidence in the industrial real estate market.
Leasing of industrial and warehousing spaces in India increased by 22% compared to the same period last year, driven by heightened activity from the manufacturing sector, e-commerce companies, and third-party logistics providers, Savills India reported. The real estate consultancy highlighted that the third quarter of 2025 was the strongest for the industrial and logistics sector, with gross absorption rising 21.7% to 21.3 million sq ft. Advertisement
Tier-I cities led the leasing trend, accounting for 17.8 million sq ft or 84% of total leased space, while Tier-II and III cities together contributed 3.5 million sq ft. According to Savills, the demand surge was mainly due to increased manufacturing activity and steady requirements from 3PL and e-commerce occupiers.
The Tier-I cities involved in this trend include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier-II and III cities that saw notable leasing activity include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum, and Anantapur.
Cumulative leasing for the first nine months of 2025 reached 55.3 million sq ft, representing a 23.4% year-on-year increase. In the July-September period, new supply rose 12% to 21.6 million sq ft, while the cumulative supply for the first nine months grew 16% to 55 million sq ft. This growth underlines the continuing expansion and investor confidence in India's industrial and logistics real estate sector.
Source PTI
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