Record High in India's Industrial & Logistics Real Estate Leasing in 9M 2025
India's industrial and logistics real estate leasing has reached an all-time high, growing 28% year-on-year in the first nine months of 2025. The demand is primarily driven by the expansion of third-party logistics (3PL) and e-commerce sectors, with Delhi-NCR leading the market.
Industrial Real EstateLogistics3plEcommerceDelhincrReal Estate NewsOct 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. These 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, commented on the growth, stating 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 optimization 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, further elaborated, “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 optimizing 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%.
The positive momentum in I&L leasing is likely to continue in Q4 2025. This optimistic outlook is supported by an anticipated increase in festive season-led demand, the upcoming completion of investment-grade supply, and the finalization of pending transactions. The 3PL and e-commerce sectors are expected to remain the primary drivers of space absorption, fueled by their ongoing efforts to optimize supply chains and reduce delivery timelines.
Frequently Asked Questions
What is the current leasing activity in India's industrial & logistics real estate sector?
The leasing activity in India's industrial & logistics real estate sector grew 28% year-on-year to 37 million square feet in the first nine months of 2025, reaching an all-time high.
Which cities are leading the leasing activity in India's industrial & logistics real estate?
Delhi-NCR, Bengaluru, and Hyderabad are leading the leasing activity, with Delhi-NCR accounting for the largest share at 11.7 million square feet.
What factors are driving the growth in leasing activity?
The growth is primarily driven by the expansion of third-party logistics (3PL) providers and the accelerated deployment of quick commerce, along with a focus on supply chain optimization and resilience.
What is the expected trend for the fourth quarter of 2025?
The positive momentum in I&L leasing is expected to continue in Q4 2025, supported by an anticipated increase in festive season-led demand and the completion of investment-grade supply.
What types of companies are contributing to the leasing activity?
3PL players, e-commerce companies, and engineering and manufacturing firms are the primary contributors to the leasing activity, with 3PL players accounting for 40% of the total quarterly leasing.
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