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.

According to JLL India, the nation’s combined warehouse absorption across 20 major markets hit an all-time high of 60 million sq. ft. in 2024. Notably, Grade A spaces constitute around 30% of the total inventory in these emerging Tier II-III cities.

Tier II-III Cities Leading the Charge

The expansion of the warehousing market in emerging cities is driven by several factors, including the surge in e-commerce, rising demand for fulfillment centers, and infrastructure development. As companies seek to reduce logistics costs and enhance delivery speed, they are increasingly establishing warehouses in these cities.

Key data from JLL India’s report highlights the warehousing stock distribution and growth in Tier I and Tier II-III cities:

Regional Growth Trends

The report categorizes growth trends in emerging warehousing cities across India:

East India

• Total Stock: 22.8 million sq. ft. (6x growth since 2017)
• Key Markets: Bhubaneswar-Cuttack (5.6 million sq. ft.), Guwahati (8.0 million sq. ft.), Patna (9.2 million sq. ft.)

North India

• Total Stock: 35.6 million sq. ft. (4x growth since 2017)
• Key Markets: Chandigarh-Rajpura (14.1 million sq. ft.), Jaipur (6.0 million sq. ft.), Lucknow (8.5 million sq. ft.), Ludhiana (7.0 million sq. ft.)

South India

• Total Stock: 15.2 million sq. ft. (3x growth since 2017)
• Key Markets: Coimbatore (6.6 million sq. ft.), Kochi (8.6 million sq. ft.)

West India

• Total Stock: 21.2 million sq. ft. (3x growth since 2017)
• Key Markets: Goa (6.7 million sq. ft.), Nagpur (13.0 million sq. ft.), Nashik (1.5 million sq. ft.)

Industry Experts Weigh In

Yogesh Shevade, Head – Logistics & Industrial, India, JLL, emphasized the rapid growth of the warehousing sector in emerging cities. “Since the implementation of GST, the Indian warehousing market has expanded significantly in major cities. Now, the hub-and-spoke model is playing a critical role in spreading this growth to Tier II-III cities. In 2024, these cities accounted for nearly 100 million sq. ft. of stock, marking a fourfold increase since 2017. We anticipate continued expansion, fueled by infrastructure initiatives connecting these cities to major consumption hubs. This transformation is creating new investment opportunities for both investors and developers.”

Government Initiatives Fueling Growth

The expansion of warehousing in emerging cities is strongly supported by government initiatives such as PM Gati Shakti, Bharatmala, Sagarmala, and the UDAN Scheme. These programs are optimizing distribution networks and improving connectivity. Additionally, policies like Make in India, Digital India, and the National Logistics Policy are fostering a robust manufacturing ecosystem. Production-Linked Incentives (PLI) and Design-Linked Incentives (DLI) schemes are also encouraging companies to set up manufacturing units in these cities, further driving the need for high-quality warehousing infrastructure.

JLL’s Report Launched at LogiMAT India 2025

The findings were unveiled in “The Shifting Landscape of Warehouse Markets Report,” presented by JLL at LogiMAT India 2025 in Mumbai. The event, held at the Bombay Exhibition Centre, saw participation from key industry leaders, including Dr. P. Anbalagan (IAS), Secretary of the Industries Department, Government of Maharashtra, and Aditya Gupta, CEO of Messe Stuttgart India.

Aditya Gupta remarked, “This report by JLL aims to bridge the gap in India’s logistics and warehousing sector by highlighting the growing prominence of Tier II-III cities as new warehousing hubs. I believe this report will inspire discussions and strategic collaborations that will drive the industry forward.”

Conclusion

The rise of Tier II-III cities as warehousing hubs is redefining India’s logistics landscape. As businesses optimize their supply chains and enhance delivery efficiencies, the sector is poised for sustained growth. With continued investments in infrastructure and policy support, these cities are set to play a crucial role in the future of warehousing in India.

Also Read: India’s tallest warehouse

The post Emerging Tier II-III Cities Drive India’s Warehousing Growth with 100 Million Sq. Ft. Contribution appeared first on Square Feat India.

Key Insights from the Report

• Decline in Deal Numbers: The total number of PE deals dropped from 30 in 9M FY24 to 24 in 9M FY25.
• Increase in Average Deal Size: The average deal size grew to $117.3 million, driven by large-scale transactions like the Reliance-ADIA/KKR deal worth $1.54 billion.
• Sectoral Dominance: The industrial and logistics sector captured 62% of total investments, boosted by the Reliance-ADIA/KKR and Blackstone-LOGOS deals.

Breakdown of Asset Classes

The industrial and logistics sector emerged as the leader, followed by the residential and office sectors.

Top PE Deals

The top 10 PE deals accounted for 93% of total transactions. Key deals included:

1. Reliance-ADIA/KKR deal (Logistics, $1.54 billion)
2. GIC-Xander deal (Commercial, Hyderabad, $258 million)
3. Blackstone-LOGOS deal (Logistics, $204 million)

Funding Trends

• Hybrid Deals Lead: Hybrid transactions dominated, accounting for 55% of investments, compared to 24% for debt and 21% for equity.
• Domestic vs. Foreign Funding: Foreign investors retained a majority share at 82%, while domestic funding increased to 18%.

Sectoral Highlights

• Residential Sector: PE investments in residential projects rose to 15% in 9M FY25 from 12% in 9M FY24, reflecting strong housing demand.
• Commercial Sector: This segment faced challenges due to geopolitical concerns and high interest rates, though operational performance remains robust.
• Industrial & Logistics: Continued demand from e-commerce, manufacturing, and 3PL supported growth in this sector, with a shift toward Grade-A properties.

Shobhit Agarwal, CEO of ANAROCK Capital, noted, “The Indian real estate sector continues to attract significant PE investments, especially in logistics and warehousing. While challenges persist in commercial real estate, the anticipated reduction in interest rates in 2025 could drive renewed interest across asset classes.”

With increased demand for quality assets and evolving investor strategies, the PE landscape in Indian real estate is poised for further growth in the coming quarters.

Also Read: ahmedabad real estate market

The post PE Investments in Indian Real Estate Surge to $2.82 Billion in 9M FY25 appeared first on Square Feat India.

The total transaction is valued at approximately ₹307 crore and involves the acquisition of Bain Capital’s interests in three key digital infrastructure platform entities: Bellissimo Digital Infrastructure Development Management Pvt. Ltd., Palava Induslogic 4 Pvt. Ltd., and Bellissimo In City FC Mumbai 1 Pvt. Ltd. This acquisition is structured through Securities Purchase Agreements (SPAs) and is expected to be completed over the next 30 to 180 days.

Transaction Breakdown:

• Bellissimo Digital Infrastructure Development Management Pvt. Ltd.: Macrotech will acquire a 30% equity stake for ₹22 crore, with completion expected within 30 days.
• Palava Induslogic 4 Pvt. Ltd.: A 33.33% equity stake will be acquired for ₹189.88 crore.
• Bellissimo In City FC Mumbai 1 Pvt. Ltd.: Macrotech will purchase a 33.33% stake for ₹95.12 crore.

The deal will be fully financed through cash transactions, with no additional regulatory approvals required. The acquisition is set to bolster Macrotech’s position in the digital infrastructure domain, which forms an integral part of its broader strategy to enhance annuity income streams.

Strategic Significance:

This acquisition is in line with Macrotech’s recent efforts to expand its industrial and logistics capabilities and reflects the company’s commitment to enhancing its business operations in high-growth sectors. The acquisition follows Macrotech’s earlier purchase of Ivanhoe Warehousing India Inc.’s stake in these entities, reinforcing its position as a key player in the rapidly growing digital infrastructure space.

The integration of Bain Capital’s interests into the LILP platform is expected to provide substantial synergies, driving growth and expanding Macrotech’s capabilities in the industrial and logistics sector while further diversifying its portfolio.

Macrotech’s Vision for Growth:

Macrotech Developers Ltd. has emphasized that the acquisition aligns with its vision of controlled expansion and long-term value creation. With a robust industrial and logistics portfolio already in place, the company is now poised to capitalize on the rapidly expanding digital infrastructure space, positioning itself for sustainable growth in the coming years.

Also Read: Lodha (Macrotech) takes over property belonging to Neptune Developer

The post Macrotech Acquires Bain Capital’s Stake in Digital Infrastructure Platforms for ₹307 Crore to Boost Industrial & Logistics Growth 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.