India's Industrial and Logistics Real Estate Sector Surges 28% in 9 Months
The industrial and logistics (I&L) real estate sector in India witnessed a 28% year-on-year growth in the first nine months of 2025, driven by robust leasing activities in top cities like Delhi-NCR, Bengaluru, and Hyderabad.
Industrial Real EstateLogistics Real EstateLeasing ActivitySupply ChainQuick CommerceReal Estate PuneOct 17, 2025
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.
Frequently Asked Questions
What is the year-on-year growth in leasing for India's industrial and logistics real estate sector in the first nine months of 2025?
The industrial and logistics (I&L) real estate sector in India witnessed a 28% year-on-year growth in the first nine months of 2025.
Which cities accounted for the largest share of total leasing activity in the first nine months of 2025?
Delhi-NCR, Bengaluru, and Hyderabad collectively accounted for 59% of the total leasing activity, with Delhi-NCR leading at 11.7 mn. sq. ft., followed by Bengaluru at 5.7 mn. sq. ft., and Hyderabad at 4.6 mn. sq. ft.
What are the primary drivers of demand in the industrial and logistics real estate sector?
The primary drivers of demand are the expansion of Third-Party Logistics (3PL) providers and the rapid growth of quick commerce, along with a focus on supply chain optimization and resilience.
How much new supply was added in the first nine months of 2025?
The supply addition in the first nine months of 2025 reached 23.8 mn. sq. ft., with institutional investor-backed developers expanding their footprint.
What was the share of domestic corporates in the total quarterly leasing in Q3 2025?
Domestic corporates contributed 68% to the total quarterly leasing in Q3 2025.
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