DHL Extends 3.17 Lakh Sq Ft Warehousing Lease in Panvel for ₹1.80 Crore Monthly Rent

DHL Logistics Private Limited has extended its lease for 3.17 lakh sq ft of warehousing space in Panvel, near Mumbai, from Ascendas Panvel FTWZ Private Limited for five years, at a monthly rent of ₹1.80 crore, according to documents accessed by Propstack.

The facility is situated near the upcoming Navi Mumbai airport, making Panvel a key logistics hub. DHL has renewed its lease at the Ascent Free Trade and Warehousing Zone, developed by Ascendas Panvel FTWZ, part of the CapitaLand Group. The lease, commencing on August 1, 2024, is at a rate of ₹56.70 per sq ft per month, with a 5% escalation from June 2025.

The company has also deposited ₹14.11 crore as a security deposit, as shown in the documents. DHL Group serves more than 50,000 locations and has over 21 million square feet in warehousing operations in India. Both DHL and CapitaLand Group declined to comment on the lease extension.

Earlier this year, Mahindra Logistics Limited leased 2.97 lakh square feet of industrial space near Pune for a monthly rent of ₹71.37 lakh for a period of five years, according to property registration documents accessed by Propstack.

Knight Frank India, a leading international property consultancy, in its half-yearly report, India Warehousing Market Report, noted a 42% year-over-year surge in leasing volumes to 32.1 million square feet across the top eight markets. This sharp rise in demand was led by the manufacturing sector, which saw a 71% year-over-year growth in space uptake, accounting for 45% of the total transactions.

The report highlights the expanding role of India as a resilient, consumption-led, and manufacturing-driven economy. The industrial and warehousing market is benefiting from global trade realignments, government-led infrastructure, and PLI (Production-Linked Incentive) investments. The increasing focus on higher-grade facilities is also evident, with 63% of leased space being Grade A, up from 54% a year ago.

Pan-India stock exceeded 500 million square feet in H1 2025, with Grade A assets constituting 75% of new supply. Vacancy rates dropped from 13.1% to 12.1% as supply lagged demand, the report said.

As far as transaction volumes are concerned, Mumbai led with 7.5 million square feet, up 63% year-over-year. Pune and Chennai registered 76% and 135% growth, respectively, driven by strong manufacturing uptake.

The logistics and warehousing sector in India is witnessing significant growth, driven by the country's strategic location, robust manufacturing base, and government initiatives. This trend is expected to continue, with more companies like DHL and Mahindra Logistics expanding their operations in key logistics hubs across the country.