Surge in Industrial Leasing: India's Logistics Landscape Expands

Leasing of industrial and warehousing spaces in India increased by 22% year-on-year from July to September 2025. Driven by manufacturing, e-commerce, and logistics demands, the sector saw a record gross absorption of 21.3 million sq ft. Tier-I cities dominated with a significant majority of leasing activities.

The leasing of industrial and warehousing spaces in India experienced a substantial increase, rising by 22% year-on-year in the July to September quarter. This surge was backed by heightened demands from the manufacturing sector, e-commerce platforms, and third-party logistics firms, according to real estate consultant Savills India.

India's industrial and logistics sector marked its strongest quarter in the third quarter of 2025. Gross absorption rose 21.7% to reach 21.3 million square feet. Tier-I cities such as Ahmedabad, Bengaluru, Chennai, and others dominated leasing activities, capturing an 84% share with 17.8 million sq ft.

Tier-II and III cities, including Guwahati and Jaipur, added 3.5 million sq ft. Overall, for the first nine months of 2025, total leasing reached 55.3 million sq ft, reflecting a 23.4% year-on-year increase. New supply also grew by 12% to 21.6 million sq ft during the third quarter.

(With inputs from agencies.)