India's Industrial and Logistics Real Estate Sector Surges 28% in 9 Months

Leasing by the industrial and logistics (I&L) real estate sector in India grew by 28% year-on-year (YoY) in the first nine months of 2025, according to a recent report. The total leasing activity across the top eight Indian cities—Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad—reached 37 million square feet (mn. sq. ft.), up from 28.8 mn. sq. ft. in the same period in 2024.

During this period, Delhi-NCR emerged as the leader with 11.7 mn. sq. ft. of leasing activity, followed by Bengaluru with 5.7 mn. sq. ft. and Hyderabad with 4.6 mn. sq. ft. These three cities collectively accounted for 59% of the total leasing activity. Mumbai and Kolkata also saw significant space take-up, registering 4.2 mn. sq. ft. and 3.8 mn. sq. ft., respectively.

The demand for industrial and logistics spaces is primarily driven by the expansion of Third-Party Logistics (3PL) providers and the rapid growth of quick commerce, according to Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East, and Africa at CBRE. Companies are increasingly focusing on supply chain optimization and resilience, leading to a higher demand for sophisticated, high-specification Grade A assets that support automation and reduce last-mile friction.

The report also noted that the supply addition in the first nine months of 2025 reached 23.8 mn. sq. ft., with institutional investor-backed developers expanding their footprint. Bengaluru, Chennai, and Mumbai collectively accounted for 62% of the total development completions.

In the July–September quarter (Q3 2025), total I&L leasing reached 10.4 mn. sq. ft., with 3PL players accounting for a 40% share, followed by e-commerce players at 18% and engineering and manufacturing firms at 15%. Domestic corporates contributed 68% to the total quarterly leasing, while EMEA corporates accounted for 14%.

This robust growth in the I&L real estate sector underscores the ongoing transformation in India's logistics landscape, driven by technological advancements and a growing focus on supply chain efficiency. The sector is expected to continue its upward trajectory, supported by favorable government policies and increasing investment from both domestic and international players.