India’s Warehousing Market Cools in 2025 After Record Highs, Signals Healthy Reset Rather Than Slowdown

After four years of rapid expansion, India’s warehousing sector moderated in 2025, with absorption declining from record highs as occupiers focused on consolidation, while long-term demand drivers remain firmly intact.

Warehousing Absorption Rebounds 64% in Q3 2025; Mumbai Leads India’s Logistics Recovery

India’s warehousing absorption rebounded sharply by 64% in Q3 2025, with Mumbai contributing nearly half of the national demand and Kolkata recording its highest-ever quarterly leasing, according to Vestian.

Industrial & Warehousing Demand Hits Record High in H1 2025

India’s industrial and warehousing sector witnessed record growth in H1 2025, with 20 million sq ft of Grade A space leased—up 33% YoY. Delhi NCR and Chennai led the surge, while 3PL, engineering, and e-commerce emerged as key drivers, according to Colliers India.