Delhi-NCR, Chennai, Mumbai & Bengaluru Lead India’s 20 Mn Sq Ft Leasing Boom
📍 New Delhi, 17 July 2025 — India’s industrial and warehousing sector has witnessed a historic first half of the year, with Grade A space leasing touching 19.5 million sq ft across top eight cities — marking a 33% year-on-year (YoY) growth, according to Colliers India.
📊 Key Highlights: H1 2025 Industrial & Warehousing Trends
| Metric | H1 2025 | YoY Change |
|---|---|---|
| Leasing (Grade A) | 19.5 mn sq ft | +33% |
| Top Demand Drivers | 3PL, Engineering, E-commerce | – |
| New Supply (Grade A) | 19.4 mn sq ft | +11% |
| Vacancy Rate | 13.5% | Stable |
| Cities with >2 mn sq ft demand | Delhi NCR, Chennai, Mumbai, Bengaluru | – |
🏙️ City-Wise Performance in Grade A Leasing – H1 2025
| City | H1 2025 Leasing (mn sq ft) | YoY Growth |
|---|---|---|
| Delhi NCR | 5.6 | +75% |
| Chennai | 3.7 | +16% |
| Mumbai | 3.1 | +24% |
| Bengaluru | 2.0 | +18% |
| Hyderabad | 1.1 | +120% |
| Pune | 1.8 | -22% |
🟨 Bhiwandi (Mumbai) was the most active micro market with 3.1 mn sq ft space take-up, followed by Oragadam (Chennai) at 1.5 mn sq ft.
🏭 Demand Drivers: 3PL Still Dominates, Engineering & E-commerce Catch Up
🟢 Third Party Logistics (3PL) companies led leasing activity with 32% share.
🟢 Engineering, E-commerce, and Auto sectors also saw robust leasing, each contributing 10–20% of total demand.
“This heterogeneity of demand reflects the sector’s resilience and aligns with India’s broad-based economic growth,”
– Vimal Nadar, National Director & Head of Research, Colliers India
📦 Larger Deals (200,000+ sq ft) Account for Half of All Leasing
About 51% of all leases in H1 2025 came from large format deals.
🔹 Delhi NCR and Mumbai led in big-ticket transactions.
🔹 Most large deals came from 3PL, e-commerce, and engineering occupiers.
🧱 New Supply Keeps Pace with Demand
India added 19.4 mn sq ft of Grade A warehousing in H1 2025 — a strong 11% annual rise, matching leasing levels and reflecting developer confidence.
🔨 Grade A Supply by City – H1 2025
| City | H1 2025 Supply (mn sq ft) | YoY Growth |
|---|---|---|
| Delhi NCR | 6.2 | +9% |
| Chennai | 3.5 | +30% |
| Mumbai | 3.4 | +127% |
| Hyderabad | 0.9 | +29% |
| Pune | 1.5 | -40% |
“Q2 2025 alone saw 10 mn sq ft of completions — the highest quarterly addition in recent years,”
– Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India
🔮 Outlook for 2025: 35–40 Mn Sq Ft of New Supply Expected
With rising absorption and high-quality Grade A developments underway, total new supply for 2025 is expected to reach 35–40 mn sq ft. The sector is well positioned for continued expansion in H2 2025, especially in key logistics hubs.
Also Read: Warehousing & Logistics sector shows resilience amidst Investment drought
