This growth is not just a number — it’s the invisible backbone behind the faster deliveries, seamless logistics, and growing online shopping ecosystem that millions of Indians rely on every day.

Why Warehouses Matter to You

When you place an online order, stock up on groceries, or receive a new appliance — the journey begins in these warehouses.
Modern logistics parks today are hubs for:

• E-commerce fulfilment: Storing, sorting, and dispatching lakhs of orders daily.
• Engineering & manufacturing supply chains: Housing raw materials and finished goods.
• Third-party logistics (3PL): Outsourced storage and transport partners who keep the supply chain moving efficiently.

These facilities, strategically located near highways and city peripheries, make it possible for goods to reach homes and businesses within hours.

Key Highlights of the 2025 Performance (Jan–Sep)

• Record Demand: 26.5 million sq. ft. leased — up 11% YoY, highest ever for this period.
• Top Cities Driving Growth: Delhi NCR, Chennai, and Mumbai together account for over 60% of total demand.
• Sector Mix:
  • 3PL firms lead with one-third of total leasing.
  • Engineering sector contributes 20%, while E-commerce follows at 15% — a 2.5x increase over last year.
• New Supply: 28.8 million sq. ft. of new space delivered — up 6% YoY.
• Vacancy: Rose by 160 bps in Q3 as new supply slightly outpaced demand.

Where the Action Is

Major warehousing clusters are concentrated in:

• Bhiwandi (Mumbai) — a traditional logistics hub close to Mumbai city.
• Oragadam (Chennai) — driven by engineering and manufacturing.
• Hoskote (Bengaluru) — popular for large tech and automotive warehousing.
• Luhari & Farukh Nagar (Delhi NCR) — preferred by 3PL and e-commerce giants.

Developers are betting big on these locations due to their connectivity to major highways, robust infrastructure, and proximity to consumption centres.

Q3 2025 — A Temporary Slowdown

After a record-breaking Q2, demand in Q3 2025 moderated to 7 million sq. ft., down 23% YoY. This dip is being seen as a temporary breather before the festive season surge, which typically drives warehousing requirements for e-commerce, electronics, and FMCG firms.

Even as vacancy levels rose slightly, rentals in prime micro-markets remained firm, indicating occupiers’ continued preference for top-quality, sustainable spaces.

Expert View

“The sector’s resilience is remarkable. Large deals continue to drive leasing activity, with 3PL and e-commerce segments at the forefront. We expect warehousing demand to pick up further in the festive quarter, building on the strong volumes seen earlier this year,”
— Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India

What This Means for Consumers and Businesses

• Faster Deliveries: More warehouses near consumption hubs = shorter delivery times.
• Stable Prices: Efficient supply chains reduce logistics costs, helping businesses manage inflation.
• Job Creation: Warehousing clusters generate local employment in operations, transport, and support services.
• Infrastructure Growth: Industrial hubs spur development of roads, power, and connectivity in surrounding areas.

In short, while you might never step inside a logistics park, it’s quietly shaping your everyday life — from same-day delivery promises to ensuring your neighbourhood kirana never runs out of stock.

Also Read: Bhiwandi: Logistic firm Rents Property for ₹85 lac a month

The post 🏭 India’s Warehousing Boom Hits Record High: 26.5 Million Sq. Ft. Leased in 9 Months — Powering E-commerce & Everyday Deliveries appeared first on Square Feat India.

The growth in India’s logistics rents comes against the backdrop of a resurgent manufacturing sector, which posted its highest performance in 14 months, driven by robust domestic demand, higher output, and rising exports.

India’s Logistics Resilience Amid Regional Weakness

The broader Asia-Pacific market saw rental growth stall in H1 2025 amid global trade tensions, pre-emptive shipping strategies, and occupier caution. Rents in key Chinese mainland markets continued to decline, while growth in Southeast Asia and Australia moderated.

In contrast, India posted a 3.4% rise in logistics rents, accelerating from 2.1% in H2 2024, despite a simultaneous increase in vacancy levels across major warehousing hubs. According to Knight Frank, this indicates sustained demand, particularly from the manufacturing sector, which continues to anchor the logistics space.

Table 1: Logistics Rent Growth – H1 2025 (YoY %)

Source: Knight Frank Logistics Highlights H1 2025

Manufacturing Boom Underpins Real Estate Demand

India’s S&P Global Purchasing Managers’ Index (PMI) for manufacturing climbed to 58.4 in June 2025, the highest since April 2024. The surge reflects rising international orders, an uptick in factory output, and record-breaking job creation in the sector.

Quote:

“India’s logistics sector continues to display strength and stability, driven by the manufacturing rebound, policy support, and sustained occupier interest,”
said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The report notes that manufacturers are the most active occupiers in Indian logistics markets, contributing significantly to the demand seen in warehouse clusters across Mumbai, Delhi NCR, Pune, and Bengaluru.

India as a Strategic Alternative in Supply Chain Realignment

The growth in India’s logistics sector also aligns with a broader realignment of global supply chains. As companies adopt China-plus-one strategies to mitigate geopolitical and tariff-related risks, India is increasingly being viewed as a cost-effective and strategically located alternative.

Quote:

“India, with a more competitive tariff structure and lower costs, is emerging as an important node in regional supply chains,”
said Christine Li, Head of Research, Asia-Pacific, Knight Frank.

Occupiers across APAC are now reconfiguring their logistics portfolios—prioritising proximity to ports, multimodal networks, and high-demand consumption zones. India’s strong infrastructure push and industrial corridor development enhance its attractiveness in this repositioning.

Vacancies Rise, But So Do Rents

Interestingly, India’s logistics rents continued to rise despite a reported increase in vacancy levels across its three largest markets. This indicates that vacancy is not uniformly distributed, and that demand is highly concentrated in prime micro-markets with strong connectivity and infrastructure.

Table 2: India’s Manufacturing & Logistics Snapshot – H1 2025

Source: Knight Frank India, Industry estimates

Outlook: Strategic Consolidation and Location-Led Growth

Despite the near-term uncertainties stemming from front-loaded shipments and global trade volatility, the report anticipates continued momentum in select Indian markets. Occupiers are expected to consolidate into larger, more efficient hubs near urban centres while vacating non-strategic locations.

Quote:

“As rental growth moderates regionally, India presents a window of opportunity for occupiers to reposition portfolios for long-term growth,”
said Tim Armstrong, Global Head of Occupier Strategy, Knight Frank.

Conclusion

India’s logistics real estate sector appears to be on a distinct growth trajectory, driven by a manufacturing-led economic rebound and strategic shifts in global supply chains. Even as Asia-Pacific faces its first logistics rent decline since 2020, India is emerging as the outlier—growing, repositioning, and redefining itself as a logistics and manufacturing powerhouse in the region.

Bhiwandi: Logistic firm Rents Property for ₹85 lac a monthAlso Read:

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Motilal Oswal Alternates (“MO Alternates”), the alternative investments arm of the Motilal Oswal Group, has successfully closed its sixth real estate fund — Indian Realty Excellence Fund VI (IREF-VI) — with total commitments of ₹2,000 crore, marking a significant milestone in India’s real estate credit ecosystem.

This fundraise represents a 65% increase over its predecessor and ranks among the largest and fastest capital raises in India’s domestic real estate credit space.

Fund Snapshot: Indian Realty Excellence Fund VI (IREF-VI)

Developer Partnerships (Select)

• Ajmera Realty
• Runwal Enterprises
• Ambuja Neotia Group
• Casagrand Group
• Radiance Realty
• Mantra Properties
• Assetz Group
• Akshar Group
• Bhagwati Group
• ASBL Group

Platform Performance & Track Record

Market Context & Strategic Outlook

India’s real estate credit market is undergoing a transformation, with rising land acquisition activity, limited traditional funding, and tightening regulations opening doors for alternative credit platforms. MO Alternates is strategically positioned to fill the funding gap with structured credit tailored to developer needs.

Leadership Speak

“Credit demand for land acquisition is accelerating, driven by renewed residential appetite, rising land values, and limited structured capital. We see significant headroom for calibrated growth.”
— Saurabh Rathi, MD & Co-Head (Real Estate), MO Alternates

“We are grateful for the continued trust of our investors. Our focus remains on performance, transparency, and consistent outcomes.”
— Anand Lakhotia, MD & Co-Head (Real Estate), MO Alternates

“This close reflects the trust placed in us by both domestic and international investors. Our domain expertise and governance framework continue to differentiate our platform.”
— Vishal Tulsyan, Co-founder & Executive Chairman, MO Alternates

Also Read: Rising property prices have boosted present homeowners’ home equity

The post Motilal Oswal Alternates Closes ₹2,000 Cr Real Estate Fund, Achieves 65% Growth Over Previous Fund appeared first on Square Feat India.

The apartment is part of the upscale Imperial Heights residential complex — a ready-to-move-in project that has become a landmark in the area. The unit spans a carpet area of 1,390 sq. ft. and a built-up area of 1,669 sq. ft., and includes two dedicated car parking spaces. As per official documents, the transaction involved a stamp duty of ₹21.65 lakh and registration charges of ₹30,000.

Goregaon West has emerged as a prime residential and commercial hub in Mumbai. Strategically situated between Andheri and Malad, the locality offers excellent connectivity through the Western Express Highway, Link Road, SV Road, and the Mumbai suburban railway. It is known for its mix of residential complexes, IT parks, office spaces, malls, and co-working hubs — making it a preferred choice for professionals and investors.

According to Square Yards Data Intelligence, Imperial Heights recorded 47 property transactions between April 2024 and March 2025, collectively valued at ₹168 crore. The average property price in the project currently stands at ₹32,170 per sq. ft., reflecting its premium positioning in the Mumbai real estate market.

Taapsee Pannu, known for her versatile roles across Hindi, Tamil, and Telugu cinema, has established herself as one of the most respected actors of her generation. She rose to fame with impactful performances in critically acclaimed films such as Pink, Mulk, Badla, and Thappad.

This real estate acquisition underlines the continued trend of high-profile Bollywood celebrities investing in Mumbai’s luxury housing market.

Also Read: Akshay Kumar sells his property to Daboo Malik

The post Taapsee Pannu Buys Apartment in Goregaon West for ₹4.33 Crore appeared first on Square Feat India.

With domestic retailers leading the charge, fashion and apparel brands dominating leasing activity, and supply chains rebounding strongly with new mall additions, the sector’s momentum is expected to accelerate in the coming quarters.

 Retail Leasing Surges: Key Metrics for Q1 2025

The organized retail stock across Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, and Kolkata now stands at 88.5 million sq. ft., bolstered by the opening of five new shopping malls in just three months.

 City-wise Breakdown: Bengaluru & Hyderabad Take the Lead

Bengaluru and Hyderabad collectively accounted for 60% of total leasing activity during Q1 2025. Leasing activity in these cities was robust on both high streets and suburban locations, especially for larger format stores catering to daily needs, grocery, F&B, and fashion.

 Retail Category Performance

Fashion-forward Indian consumers, particularly the youth, are driving store expansion in both premium and value segments. Fast fashion and contemporary lifestyle brands led space absorption, reinforcing the sector’s optimism.

 Domestic Retailers Dominate Space Take-up

Domestic brands, including many Direct-to-Consumer (D2C) players, significantly outpaced international ones. Notably, international retailers leased 0.4 million sq. ft., and eight new foreign brands made their India debut this quarter, including names in fast fashion, premium coffee, and electric vehicles.

 Mall Supply Rebounds After a Tough 2024

India saw five new Grade A malls become operational in Q1 2025, totaling 2 million sq. ft. — a sharp recovery after a 73% decline in mall supply during 2024.

This fresh supply in premium micro-markets has helped alleviate pressure on demand and is likely to boost leasing further.

 What’s Ahead for 2025?

JLL estimates 7 million sq. ft. of new Grade A mall space will be added in the remaining three quarters of 2025. With leasing already at 3.1 million sq. ft., experts predict that gross leasing could easily surpass the 10 million sq. ft. markby year-end.

 Key Takeaways

• Q1 2025 is the strongest retail quarter in 3 years, both in demand and new supply.
• Fashion & F&B remain top growth drivers.
• Domestic retailers are leading expansion, backed by rising consumer confidence.
• Grade A mall space pipeline is strong for the rest of 2025.
• Bengaluru and Hyderabad are leading India’s retail footprint expansion.

India’s retail story is being rewritten in 2025 — not just with booming consumerism, but with a physical retail footprint that is adapting, expanding, and thriving. With both demand and supply aligned, the sector is set to make 2025 a landmark year.

Also Read: Indian Real Estate: Riding Higher in 2025

The post Retail Real Estate Booms in India: 169% YoY Growth in Q1 2025 Leasing Activity appeared first on Square Feat India.