India’s industrial and warehousing sector achieved a record-breaking year in 2025, with leasing activity reaching approximately 36.9 million sq ft, marking a 16% year-on-year growth, according to Colliers India. This surge reflects strong demand from e-commerce, engineering, and third-party logistics (3PL) companies, which continue to expand operations across key industrial hubs.
Delhi NCR and Chennai emerged as the leaders, together contributing nearly 46% of the total leasing activity. Delhi NCR accounted for about 24% of the absorption, while Chennai contributed 22%, reinforcing their positions as India’s most active industrial markets. Other cities such as Pune and Mumbai also showed healthy demand, though at lower volumes.
Large-ticket transactions dominated the market, representing 45% of overall demand, while 3PL occupiers drove roughly 32% of Grade A space uptake. Engineering and e-commerce companies together contributed around 35% of the leased area, highlighting the sector’s diverse and resilient growth.
Developers responded to this demand by adding about 41.7 million sq ft of new Grade A space, a 15% increase year-on-year, with Delhi NCR accounting for nearly 30% of the new supply. Despite the rising completions, vacancy levels remained stable at around 16%, reflecting strong absorption in key micro markets.
Looking ahead, Colliers India expects Delhi NCR, Chennai, Pune, and Mumbai to continue dominating industrial leasing activity, potentially accounting for 70–80% of total demand in 2026. This trend mirrors the growth in residential and commercial projects in areas like Whitefield and Sarjapur Road, which remain high-demand corridors for investment and occupation.
With infrastructure development accelerating and occupier confidence strong, India’s industrial real estate market is poised for continued momentum, offering opportunities for both investors and developers to capitalize on high-growth corridors.
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