India’s warehousing and logistics sector witnessed a strong rebound in the third quarter of calendar year 2025 (Q3 CY2025), with national absorption rising 64 per cent over the previous quarter to reach 9.2 million sq ft, according to real estate consultancy Vestian.
Despite the sequential growth, absorption remained 36 per cent lower year-on-year, compared to the record levels seen in Q3 2024.
Mumbai Leads with Nearly Half of Pan-India Activity
Mumbai emerged as the clear leader, accounting for 47 per cent of total absorption at 4.29 million sq ft, a sharp 377 per cent jump from the previous quarter and 10 per cent higher year-on-year. Vestian said most of this activity came from Bhiwandi and Panvel, two key warehousing clusters in the region.
NCR and Chennai Follow with Strong Recoveries
The National Capital Region (NCR) ranked second with 1.28 million sq ft of space absorbed, up 83 per cent quarter-on-quarter though down 40 per cent compared to the same period last year.
Chennai recorded its highest leasing in seven quarters at 1.13 million sq ft, marking a 151 per cent rise over Q2 2025 and 38 per cent growth year-on-year.
Kolkata Hits Record Absorption; Pune and Bengaluru Lag
Kolkata reported its highest-ever absorption at 1.26 million sq ft, representing an extraordinary 950 per cent jump from the previous quarter and 186 per cent growth year-on-year, signaling strong expansion momentum.
Hyderabad saw moderate growth with 0.47 million sq ft absorbed, up 7 per cent sequentially but 14 per cent lower year-on-year.
In contrast, Pune continued to decline for the fourth consecutive quarter, slipping 31 per cent from Q2 2025 and 87 per cent from a year earlier to 0.64 million sq ft. Bengaluru recorded the lowest activity among major markets at 0.13 million sq ft, down 94 per cent quarter-on-quarter and 90 per cent year-on-year.
Outlook: Optimism Returns Amid E-commerce and 3PL Growth
Commenting on the trends, Shrinivas Rao, FRICS, CEO of Vestian, said the quarter showed “clear signs of revival,” led by robust performances in Mumbai, Kolkata and NCR.
“The surge in occupier interest, along with renewed momentum in e-commerce and 3PL businesses, reflects the sector’s growing strength,” Rao said, adding that the industry’s focus on network optimisation and higher-quality assets is “reshaping the warehousing landscape for stronger performance in the coming months.”
