According to Colliers India, industrial & warehousing leasing across the top eight cities touched 36.9 million sq ft in 2025, registering a 16% year-on-year growth. Nearly 45% of this demand came from large-sized transactions of over 200,000 sq ft, underlining the increasing scale at which occupiers are expanding their logistics and manufacturing footprints.

Delhi NCR and Chennai Emerge as Demand Anchors

Two markets clearly stood out in 2025 — Delhi NCR and Chennai, which together accounted for 46% of total industrial & warehousing leasing activity during the year.

• Delhi NCR led the pack with an 8.8 million sq ft absorption and a 24% share of national demand
• Chennai followed closely with 8.1 million sq ft, contributing 22%

On a quarterly basis, after a relatively muted Q3, leasing momentum picked up sharply in Q4 2025, with 10.4 million sq ft of space transacted. Chennai and Pune together made up 56% of Q4 demand, highlighting strong year-end expansion activity by occupiers.

3PL Firms Drive One-Third of Leasing Activity

Third-Party Logistics (3PL) companies continued to dominate India’s Grade A warehousing market in 2025. Colliers data shows that 3PL players leased around 12 million sq ft, accounting for 32% of total demand.

Engineering and e-commerce occupiers also gained traction and together contributed about 35% of total leasing, reflecting the growing importance of domestic manufacturing, electronics, automobiles, and online retail supply chains.

At a micro-market level:

• Bhiwandi (Mumbai) led leasing nationally with 4.9 million sq ft
• Chakan–Talegaon (Pune) and Oragadam (Chennai) followed, each crossing 2.5 million sq ft

These locations benefited from proximity to consumption hubs, manufacturing clusters, and established logistics infrastructure.

Large Deals Dominate the Market

Large-sized transactions (≥200,000 sq ft) played a defining role in shaping leasing trends in 2025:

• 16.7 million sq ft, or 45% of total leasing, came from large deals
• Delhi NCR, Chennai, Mumbai, and Hyderabad saw 50% or more of their leasing volumes coming from such large transactions

Within the e-commerce segment, nearly 61% of quarterly leasing occurred through large-format deals, driven by the expansion of fulfillment centers and regional distribution hubs.

In contrast, FMCG and retail occupiers leaned toward mid-sized warehouses (100,000–200,000 sq ft), reflecting the rise of hyperlocal and last-mile delivery models.

Key Transactions Highlight Scale of Demand

Some of the largest deals in 2025 underline the growing scale of industrial real estate requirements:

• Scootsy Logistics (Swiggy) leased 580,700 sq ft at One K Square, Bhiwandi
• Amazon took 500,000 sq ft at Welspun Logistics Park, Luhari (Delhi NCR)
• Honda leased 500,000 sq ft at Ascendas, Hoskote (Bengaluru)
• Jabil Inc. signed 385,000 sq ft at Ecobox Industrial Park, Pune

Q4 2025 alone saw marquee transactions from DHL, D-Mart, GE Vernova, and Hyundai Mobis, highlighting strong year-end occupier confidence.

Supply Pipeline Expands Amid Developer Confidence

Developers responded to sustained demand with aggressive supply additions. New completions reached 41.7 million sq ft in 2025, marking a 15% YoY increase — the highest level in recent years.

• Delhi NCR accounted for nearly 30% of total completions
• Q4 2025 alone added ~13 million sq ft, up 40% YoY

Despite rising supply, demand in active micro-markets kept vacancy levels rangebound at around 16%. Average rentals in key logistics clusters increased 5–10%, reflecting tightening availability in high-demand locations.

Outlook: Demand to Remain Concentrated in Core Markets

Commenting on the outlook, Vijay Ganesh, Managing Director – Industrial & Logistics Services, Colliers India, said strong Q4 performance, large deal sizes, and sustained developer confidence indicate long-term growth momentum, supported by government focus on manufacturing and logistics infrastructure.

Vimal Nadar, National Director & Head – Research, Colliers India, added that Delhi NCR, Chennai, Mumbai, and Pune are expected to cumulatively account for 70–80% of industrial & warehousing demand in 2026, backed by established industrial ecosystems and superior connectivity.

Also Read: Robust Investments Bolster Warehousing & Logistics Sector in 2024

The post Big-Ticket Deals Power India’s Warehousing Boom as Leasing Hits Multi-Year High in 2025 appeared first on Square Feat India.

This surge in sustainable storage space underscores the profound shifts underway in India’s logistics and industrial real estate markets as institutional investors and large corporate occupiers align with Net Zero commitments and global ESG mandates.

“India’s green warehousing transformation is driven not only by institutional investor-backed developers but also by corporate occupiers. Most corporates have Net Zero goals, making Green Certified warehouses non-negotiable,”
Yogesh Shevade, Head – Industrial & Logistics, India, JLL.

India Warehousing Growth Snapshot

Key Drivers of the Green Surge

• Institutional Investment:
  Institutional Grade A warehousing space has tripled since 2019, with over 45% of the 90 million sq. ft. institutional portfolio already certified under LEED, IGBC, GRIHA, or similar green standards. An additional 20% is either pre-certified or in the process of certification.
• Corporate Net Zero Targets:
  Companies are prioritizing sustainable facilities to achieve 30–40% energy savings, water conservation, waste recycling, and improved operational efficiency.
• E-Commerce and Modernization:
  The expansion of e-commerce has driven demand for high-quality, future-ready warehouses.

Breakdown of Institutional Grade A Green Warehousing (2024)

Institutional Pipeline by 2030

By 2030, institutional developers are expected to contribute approximately 260 million sq. ft. of Grade A space, representing 70% of forecasted Grade A supply and 80% of compliant green warehouse supply.

“Post-Covid, institutional investment has doubled in warehousing. Developers have realized that MNC tenants demand Green Certified assets—it’s simply a baseline expectation,”
JLL Research.

Looking Ahead

JLL analysts highlight that apart from new construction, retrofitting existing non-green Grade A warehouses remains a significant opportunity. Funding avenues and incentives for upgrading older stock will be essential to fully future-proof India’s warehousing assets.

Also Read: Chennai Delhi NCR warehousing

The post India’s Green Warehousing Footprint to Quadruple by 2030 appeared first on Square Feat India.

The report identifies e-commerce, third-party logistics (3PL), and omni-channel retail as primary drivers behind this warehousing boom. Notably, while Tier I cities have traditionally led the sector, Tier II and III cities are now emerging as key growth areas, with warehouse space absorption in these markets increasing by 41% from 2022 to 2023.

“Warehousing absorption in Tier II and III cities reached 16.4 million sq. ft in 2023, indicating a significant shift in the geographical distribution of logistics infrastructure,” said Sanjay Bajaj, Senior Managing Director of Logistics & Industrial at JLL India. The report also highlights the growing need for urban fulfillment centers, estimating that the combined space requirement for these centers will exceed 35 million sq. ft across India by 2027, driven by the demand for efficient last-mile delivery solutions.

As the sector evolves, sustainability is becoming increasingly important, with many developers adopting Environmental, Social, and Governance (ESG) standards in their projects. The National Logistics Policy, aimed at reducing logistics costs to 10% of GDP, is also creating a more favorable environment for organized warehouse development.

This strategic shift positions India as a key player in the global warehouse automation market, projected to reach $2 billion annually by 2026. With these developments, the Indian warehousing sector is set to play a pivotal role in the country’s economic growth and supply chain transformation.

Also Read: Industrial & Warehousing Demand Sees Robust Growth in 2024, Surpassing 20 Million Sq Ft of Leasing

The post Indian Warehousing Demand Projected to Reach 1.2 Billion Sq. Ft by 2027, According to JLL appeared first on Square Feat India.