India's Industrial and Logistics Real Estate Sector Surges 28% in Nine Months
New Delhi, Oct 17 (IANS) The industrial and logistics (I&L) real estate sector in India has seen a significant surge, growing by 28% year-on-year (YoY) in the first nine months of 2025, according to a recent report. The total leasing activity during this period, spanning 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 the first nine months of 2025, Delhi-NCR emerged as the leader in leasing activity, accounting for 11.7 mn. sq. ft., followed by Bengaluru with 5.7 mn. sq. ft. and Hyderabad with 4.6 mn. sq. ft. These three cities collectively represented 59% of the total leasing activity. Mumbai and Kolkata also saw substantial space take-up, with 4.2 mn. sq. ft. and 3.8 mn. sq. ft., respectively.
The demand for industrial and logistics real estate is primarily driven by the expansion of Third-Party Logistics (3PL) providers and the rapid growth of quick commerce. Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East, and Africa at CBRE, highlighted that companies are increasingly focused on supply chain optimization and resilience. This focus is leading to a higher demand for sophisticated, high-specification Grade A assets that support automation and reduce last-mile delivery challenges.
The report also noted that the supply addition during the nine-month period 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. Third-party logistics (3PL) players dominated the market, accounting for 40% of the total leasing activity, 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%.
The growth in the I&L real estate sector underscores the increasing importance of logistics and supply chain management in India's economic landscape. As the country continues to develop its infrastructure and attract more international investments, the demand for high-quality industrial and logistics facilities is expected to remain robust.
