India’s warehousing and logistics sector bounced back strongly in Q3 2025, recording 9.2 million sq ft of absorption — a 64% jump from the previous quarter, according to Vestian. However, absorption remained 36% lower than the historic highs seen in Q3 2024.
Mumbai Powers National Growth With 47% Share
Mumbai emerged as the largest contributor, accounting for nearly half (47%) of India’s total absorption in Q3 2025. The city recorded 4.29 million sq ft, marking a 377% QoQ and 10% YoY increase.
Much of the demand centered around micro-markets such as:
- Bhiwandi
- Panvel
These two locations alone accounted for 96% of Mumbai’s absorption, signaling renewed confidence from occupiers in India’s most active logistics hub.
City-Wise Absorption Snapshot (Key Pointers)
- Mumbai: 4.29 mn sq ft | +377% QoQ | +10% YoY
- Kolkata: 1.26 mn sq ft | +950% QoQ | +186% YoY (highest ever for the city)
- NCR: 1.28 mn sq ft | +83% QoQ | -40% YoY
- Chennai: 1.13 mn sq ft | +151% QoQ | +38% YoY (best performance in 7 quarters)
- Hyderabad: 0.47 mn sq ft | +7% QoQ | -14% YoY
- Pune: 0.64 mn sq ft | -31% QoQ | -87% YoY (continued decline for 4th quarter)
- Bengaluru: 0.13 mn sq ft | -94% QoQ | -90% YoY (lowest among top cities)
Kolkata Records Its Highest-Ever Quarterly Absorption
Kolkata surprised the market with an extraordinary 950% QoQ surge, touching 1.26 million sq ft — its best performance on record. The spike reflects pent-up demand and large-scale commitments by occupiers.
Southern Markets Show Mixed Trends
- Chennai posted a strong comeback with its highest absorption in nearly two years.
- Hyderabad remained steady but saw a slight YoY decline.
- Bengaluru recorded an unusually weak quarter, marking the lowest absorption among major markets.
Pune’s Four-Quarter Decline Continues
Once a consistent performer, Pune saw absorption slide for the fourth consecutive quarter, driven by weakening occupier interest and delayed expansions.
Sector Outlook: E-commerce and 3PLs Driving Revival
Shrinivas Rao, FRICS, CEO of Vestian, said renewed demand from E-commerce and 3PL (third-party logistics) players is driving the turnaround:
“Mumbai, Kolkata, and NCR are leading the revival. The resurgence in occupier demand, coupled with momentum in e-commerce and 3PL, shows the sector’s strengthening fundamentals. Network optimisation and Grade-A warehouse preferences will reshape the market in coming quarters.”
