India’s warehousing and logistics real estate sector has entered a decisive growth phase, underpinned by structural shifts in consumption, manufacturing, and supply-chain strategy. Rapid e-commerce expansion, the rise of organised retail, and sustained government focus on infrastructure and policy reforms have collectively transformed the sector into one of the most resilient real estate asset classes in the country. 

Industrial and warehousing leasing across India’s top eight cities reached 36.9 million sq ft in 2025, reflecting a 16% year-on-year increase and one of the strongest performances recorded in recent years. With momentum remaining strong, gross leasing is expected to cross 60 million sq ft by year-end, setting a new benchmark for the logistics and industrial market.  

Demand continues to broaden geographically. While Delhi-NCR and Chennai led absorption -together accounting for nearly half of total leasing -the increasing penetration of Tier-2 locations is reshaping India’s logistics map. This decentralisation, combined with the emergence of integrated logistics parks and built-to-suit facilities, has made India’s ambition of reaching 850 million sq ft of warehousing stock by 2030 increasingly achievable.  

Third-party logistics (3PL) operators remained the largest occupiers, contributing roughly one-third of total demand, while engineering and e-commerce players continued to scale up operations. Notably, large-format transactions above 200,000 sq ft formed nearly 45% of total absorption, indicating strong occupier confidence and a clear shift toward consolidation and scale.  

With initiatives such as “Make in India,” PLI schemes, and logistics modernisation gaining traction, India’s warehousing market is well-positioned for sustained, long-term growth.