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Leasing of industrial and warehousing spaces across eight major Indian cities increased by 28% during the January & September period this year, reaching a record 37 million sq ft, according to CBRE. Delhi-NCR led with 11.7 million sq ft, followed by Bengaluru with 5.7 million sq ft and Hyderabad with 4.6 million sq ft. Together, these cities accounted for nearly 59% of the total leasing. The sector also saw 23.8 million sq ft of new supply, largely contributed by institutional developers in Bengaluru, Chennai, and Mumbai.
Leasing activity in India's industrial and logistics real estate sector maintained strong momentum in the first nine months of this year. As per CBRE's latest. India Market Monitor Q3 2025. Industrial & Logistics report, total leasing across the top eight Indian cities Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad rose 28% year-on-year to 37 million sq ft. During the same period last year, total leasing stood at 28.8 million sq ft. Advertisement
Delhi-NCR continued to dominate the market with the largest share of leasing activity at 11.7 million sq ft, followed by Bengaluru at 5.7 million sq ft and Hyderabad at 4.6 million sq ft. Together, these three cities accounted for nearly 59% of total leasing across India. Mumbai and Kolkata followed with 4.2 million sq ft and 3.8 million sq ft respectively, while Chennai, Pune, and Ahmedabad also recorded steady leasing activity through a mix of logistics, e-commerce, and manufacturing demand.
CBRE attributed this growth primarily to the expansion of Third-Party Logistics (3PL) providers and the rising presence of quick-commerce companies. Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, mentioned that companies are now focusing more on optimising supply chains and improving resilience. He added that this shift has created a growing preference for advanced, high-quality Grade A warehousing assets that allow automation and help reduce last-mile challenges.
Ram Chandnani, Managing Director for Advisory & Transaction Services, India at CBRE, noted that this positive momentum is expected to continue as occupiers expand operations and optimise logistics networks to meet demand from both manufacturing and consumption-driven sectors.
During the same period, new supply reached 23.8 million sq ft, supported mainly by institutional investor-backed developers expanding their portfolios. Bengaluru, Chennai, and Mumbai together contributed about 62% of this new supply, highlighting continued interest from developers in well-connected industrial clusters. CBRE observed that these cities are attracting strong investments because of improved infrastructure, growing consumer markets, and consistent policy support.
Industry trends also suggest that the industrial and logistics real estate segment is gaining maturity as occupiers increasingly demand modern facilities with sustainability features and automation capabilities. The consistent rise in leasing volumes reflects how India's logistics network is adjusting to support expanding e-commerce, retail, and manufacturing activity across regions.
Source PTI
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