India's Industrial and Logistics Real Estate Sector Surges 28% in Nine Months
The industrial and logistics (I&L) real estate sector in India has experienced a 28% year-on-year growth in leasing activity, totaling 37 million square feet across eight major cities in the first nine months of 2025.
Industrial Real EstateLogistics Real EstateReal Estate GrowthIndia Real EstateLeasing ActivityReal Estate NewsOct 17, 2025
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.
Frequently Asked Questions
What is the growth rate of the industrial and logistics real estate sector in India for the first nine months of 2025?
The industrial and logistics real estate sector in India grew by 28% year-on-year (YoY) in the first nine months of 2025.
Which cities saw the highest leasing activity in the industrial and logistics real estate sector?
Delhi-NCR, Bengaluru, and Hyderabad saw the highest leasing activity, collectively accounting for 59% of the total leasing activity.
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.
How much new supply was added to the industrial and logistics real estate market in the first nine months of 2025?
The supply addition during the nine-month period reached 23.8 million square feet.
Which sectors contributed the most to the leasing activity in Q3 2025?
Third-party logistics (3PL) players contributed 40% of the total leasing activity, followed by e-commerce players at 18% and engineering and manufacturing firms at 15%.
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