India's Logistics and Industrial Leasing Soars by 21.6% in H1 2025
New Delhi: The gross logistics and industrial (L&I) leasing in India is on track to exceed 60 million square feet (MSF) by the end of 2025, setting a new benchmark for the sector. This strong demand was highlighted in a report by Cushman and Wakefield, a leading real estate services firm, released on Saturday.
In the first half of 2025 (H1 2025), the growth of leasing across warehousing and industrial segments remained robust, with a total leasing of 30.7 MSF. This represents a 21.6% increase year-on-year (YoY) and is 12.1% higher than the second half of 2024. The sector’s strong fundamentals are evident, with leasing activity surpassing 50 MSF annually for the last three consecutive years. With momentum holding strong, gross leasing is expected to cross 60 MSF by year-end, setting a new benchmark for India’s Logistics & Industrial market.
According to the report, warehousing remained the dominant driver, accounting for 21.9 MSF of leasing and representing 71.3% of the total leasing. The industrial space contributed 8.8 MSF, making up 28.7% of the total leasing. From a sectoral perspective, engineering and manufacturing (E&M) led overall leasing with 9.7 MSF, accounting for 32% of total absorption and recording a 37% YoY growth.
This growth reflects the manufacturing sector’s growing role in India’s self-reliant economy, aided by infrastructure upgrades and supportive policies. 3PL operators leased 7.4 MSF, representing a 24% share and showcasing stable growth, indicating market maturity after earlier expansion waves, the report noted.
The e-commerce sector recorded the sharpest annual surge, with a 158% YoY growth to reach 4.6 MSF and capture a 15% share of total leasing. This growth is driven by festive season stocking and last-mile network expansion. Abhishek Bhutani, Managing Director, Logistics and Industrial Services India, Head- Gujarat, Cushman and Wakefield, said, “H1 performance reinforces how India’s logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength.”
The consistency of demand across segments highlights that occupiers are no longer only chasing capacity but also efficiency, location, and long-term value. What stands out is the sharper role of manufacturing and the resurgence of e-commerce, which together are reshaping supply chain strategies, he added.
With strong demand fundamentals, a healthy supply pipeline of 25 MSF of Grade-A warehousing is expected over the next 2-3 years, and supportive policy measures, India’s logistics and industrial real estate sector is poised to maintain its upward trajectory through 2025, the report concluded.
