Surging Rents: India's Warehousing Market Booms Amid Rising Demand

Demand for warehousing spaces in India's top eight cities drove average monthly rents up by 2-5% annually in Q1 2025, according to Knight Frank. Mumbai led the rise with a 5% increase. The tight supply and increased demand led to a 50% growth in leasing activity, highlighting a robust market recovery.

In a burgeoning trend, warehousing rents in India's major cities saw a notable rise, driven largely by increasing demand. According to a report from Knight Frank, a real estate consultancy, the January-March period showed significant rent growth across eight major urban centers.

Mumbai, the nation's largest warehouse market, led the surge with a 5% annual increase, reaching Rs 24.7 per square foot. Following closely, Kolkata mirrored this growth percentage. Meanwhile, Ahmedabad's rental rates climbed by 4%.

The leasing market also reported an impressive 50% increase in activity, amounting to 16.7 million square feet, compared to the previous year. Despite this demand, the report notes a stable rent environment sustained by limited supply dynamics.