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.”

Also Read: Industrial and Warehousing real estate industry

The post Warehousing Absorption Rebounds 64% in Q3 2025; Mumbai Leads India’s Logistics Recovery appeared first on Square Feat India.