India's Industrial & Logistics Real Estate Leasing Reaches All-Time High in 9M 2025
India's industrial and logistics (I&L) real estate sector has seen a 28% year-on-year increase in leasing, reaching an all-time high of 37 million square feet in the first nine months of 2025, according to CBRE.
Industrial Real EstateLogistics Real EstateCbreIndiaLeasingReal EstateOct 17, 2025
The report titled, ‘India Market Monitor Q3 2025 – Industrial & Logistics’ states that the total leasing during the period, across the top 8 Indian cities - Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad - stood at 37 million square feet, as compared to 28.8 million square feet during 9M 2024.
During 9M 2025, Delhi-NCR accounted for the largest share of total leasing activity at 11.7 million square feet, followed by Bengaluru at 5.7 million square feet and Hyderabad at 4.6 million square feet. The three cities accounted for a cumulative share of 59%. Mumbai and Kolkata registered space take-up of 4.2 million square feet and 3.8 million square feet, respectively.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said that the demand is largely led by the expansion of Third-Party Logistics (3PL) providers and the accelerated deployment of quick commerce. “Companies are increasingly focused on supply chain optimisation and resilience, driving a mandate for sophisticated, high-specification Grade A assets that support automation and reduce last-mile friction,” he added.
Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said, “The sustained demand from domestic corporates, coupled with robust supply additions in top cities, points to a maturing market that is increasingly aligning with India’s broader logistics and e-commerce growth story. This momentum is expected to continue as businesses focus on optimising supply chains and expanding their footprints.”
During 9M 2025, the supply addition came in at 23.8 million square feet as institutional investor-backed developers continued to expand 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 million square feet; 3PL players accounted for a 40% share, followed by e-commerce players at 18% and engineering and manufacturing firms at 15%. The domestic corporates contributed 68% to the total quarterly leasing, while EMEA corporates accounted for 14%.
Positive momentum to continue
I&L leasing momentum is likely to continue in Q4 2025. This positive outlook is supported by an anticipated increase in festive season-led demand, the upcoming completion of investment-grade supply, and the finalisation of pending transactions. The 3PL and e-commerce sectors are expected to remain the primary drivers of space absorption, fuelled by their ongoing efforts to optimise supply chains and reduce delivery timelines.
Frequently Asked Questions
What is the total leasing activity in the I&L sector in the first nine months of 2025?
The total leasing activity in the I&L sector in the first nine months of 2025 stood at 37 million square feet.
Which city accounted for the largest share of total leasing activity in 9M 2025?
Delhi-NCR accounted for the largest share of total leasing activity at 11.7 million square feet.
What factors are driving the demand in the I&L real estate sector?
The demand is largely led by the expansion of Third-Party Logistics (3PL) providers and the accelerated deployment of quick commerce, with companies focusing on supply chain optimisation and resilience.
What is the expected trend for I&L leasing in Q4 2025?
I&L leasing momentum is likely to continue in Q4 2025, supported by an anticipated increase in festive season-led demand, the upcoming completion of investment-grade supply, and the finalisation of pending transactions.
Which sectors are expected to be the primary drivers of space absorption in Q4 2025?
The 3PL and e-commerce sectors are expected to remain the primary drivers of space absorption, fuelled by their ongoing efforts to optimise supply chains and reduce delivery timelines.
Related News Articles
Amitabh and Abhishek Bachchan Expand Real Estate Empire with INR 24.95 Crore Investment in Mulund
Bollywood icons Amitabh and Abhishek Bachchan have made a significant real estate investment in Mulund West, Mumbai, acquiring ten upscale apartments for INR 24.95 crore. This move highlights their strategic approach to property investments and their fait
Macrotech Developers Files IPR Suit Against Brother Over 'Lodha' Name
Mumbai: Macrotech Developers, a prominent real estate company headed by Abhishek Lodha, has initiated an intellectual property rights (IPR) lawsuit in the Bombay High Court to prevent his brother from using the 'Lodha' name.
Office Space Demand in Top 6 Cities to Reach 700 Lakh Sq Ft in 2025
Real estate consultant Colliers India projects a strong demand for office space in the top six cities, including Bengaluru, Pune, Hyderabad, and Chennai, with gross leasing transactions estimated at 650-700 lakh square feet this year.
LIC-backed Navratna Multibagger Penny Stock Secures Rs 82 Crore Order
A LIC-backed Navratna multibagger penny stock has secured a significant order worth Rs 82 crore, marking a major milestone in its growth trajectory. The company, which predominantly operates in the PMC segment, is poised for further expansion and increased market presence.
RBI Repo Rate Cut Fails to Boost Real Estate Stocks; Market Reaction Mixed
The Reserve Bank of India's (RBI) recent repo rate cut aimed to stimulate the economy and real estate sector, but the market's reaction has been mixed. Despite expectations of increased residential sales and better liquidity, stocks of major real estate companies like Phoenix Mills, Anant Raj, Sobha, and Oberoi Realty have not shown significant gains.
Mumbai Metro 2B Trial Begins: A Leap Towards Modern Urban Connectivity
Mumbai Metro 2B has officially commenced trials between Mandale and Chembur, marking a significant step towards enhancing the city's public transport network. This development is expected to provide much-needed relief to commuters and boost real estate and urban development in the region.