Bengaluru, Chennai, and Hyderabad recorded a sharp 58% increase in industrial and warehousing space leasing during the January-March period, highlighting strong occupier demand across South India’s major logistics and manufacturing hubs.
The surge reflects growing momentum in sectors such as e-commerce, third-party logistics, retail distribution, engineering, electronics, and fast-moving consumer goods, all of which continue to expand their storage and supply chain footprints.
Industry experts said the three cities are benefiting from strong infrastructure connectivity, access to ports and airports, established industrial corridors, and a deep talent pool that supports both manufacturing and technology-led supply chains.
Bengaluru continued to attract demand from e-commerce, consumer goods, and high-value manufacturing companies seeking modern warehousing facilities near urban consumption centres. Chennai remained a preferred market due to its port access, automotive ecosystem, and industrial base, while Hyderabad saw rising traction from pharmaceuticals, retail, and distribution operators.
Developers have responded by accelerating construction of Grade A logistics parks and built-to-suit facilities to meet growing tenant requirements for automation-ready, compliant , and strategically located assets.
Analysts noted that leasing growth in these southern markets signals increasing decentralisation of India’s warehousing sector beyond traditional western hubs. With infrastructure upgrades, expressway expansion, and continued manufacturing investments, demand is expected to remain strong through the year.
The robust January-March performance also reinforces confidence in India’s broader industrial real estate market, where organised warehousing is becoming a critical pillar of modern supply chain efficiency.
