Delhi-NCR has solidified its position as the country’s largest third-party logistics (3PL) hub, accounting for 25% of total leasing activity in the industrial and logistics (I&L) sector since 2021, according to a CBRE report released on Thursday. It is closely followed by Mumbai at 24% and Bengaluru at 16%.
“The top six cities, including Chennai, Kolkata, and Hyderabad, represented nearly 70% of total 3PL leasing activity between 2021 and the first half of 2025,” the report noted.
3PL companies, which manage the complete supply chain and logistics operations for clients, have become the largest demand drivers for India’s logistics real estate market. Between 2021 and 2024, they accounted for 40-50% of total sector leasing activity, while in H1 2025, they captured over 30%.
“Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce sector have made it an important hub for the industrial and logistics sector,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE. He added that Tier-II and III cities are emerging as new growth hubs, as rising consumption and lower land costs encourage 3PL firms to expand beyond metro areas.
The report also highlighted a shift towards an asset-light model, with over 60% of surveyed India-based 3PL firms preferring space in multi-tenanted buildings over the next 24 months , rather than building their own facilities. This is followed by build-to-suit developments (28%) and acquisitions of existing assets (22%).
Technology adoption is also rising, with around 76% of 3PL companies now using warehouse management software. Many are implementing IoT sensors, conveyor and sortation systems, and Goods-to-Person picking systems, reflecting a broader move toward intelligent, automated warehouses.
During 2021–H1 2025, 3PL firms drove most of India’s “big-box” leasing (over 100,000 sq. ft.) in terms of both value and volume, underscoring the need for scalable, future-ready warehousing solutions to meet growing demand from e-commerce, retail, and manufacturing.
“This strategy helps companies scale faster and reduce costs. 3PL players aim to expand rapidly to match the growth of e-commerce and quick commerce, supported by government infrastructure initiatives,” said Ram Chandnani, Managing Director, Leasing Services, CBRE India.
