DHL Logistics Private Limited has renewed its lease for 3.17 lakh square feet of warehousing space in Panvel, near Mumbai, with Ascendas Panvel FTWZ Private Limited, a CapitaLand Group entity. The lease, effective August 1, 2024, spans five years at a monthly rent of ₹1.80 crore (₹56.70 per square foot), with a 5% escalation starting June 2025. A security deposit of ₹14.11 crore has also been submitted, according to property registration documents accessed by Propstack.
The leased facility is part of the Ascent Free Trade and Warehousing Zone (FTWZ) in Panvel, strategically located near the upcoming Navi Mumbai International Airport. The city is rapidly emerging as a logistics hub due to its enhanced connectivity and modern infrastructure, attracting major players in warehousing and supply chain operations. DHL currently operates over 21 million square feet of warehouse space across India, serving more than 50,000 locations worldwide.
The lease highlights broader trends in India’s industrial and warehousing sector. According to Knight Frank India’s half-yearly India Warehousing Market Report, leasing volumes across the top eight cities grew 42% year-on-year, reaching 32.1 million square feet. Manufacturing-led demand contributed significantly, accounting for 71% of growth and 45% of total leasing transactions. The report also noted a shift toward higher-grade facilities, with 63% of leased space classified as Grade A, up from 54% last year.
Pan-India warehouse stock surpassed 500 million square feet in the first half of 2025, with Grade A facilities constituting 75% of new supply. Vacancy rates declined from 13.1% to 12.1% as demand outpaced availability. Among cities, Mumbai led with 7.5 million square feet of leased space, marking a 63% year-on-year increase. Pune and Chennai also recorded substantial growth, with 76% and 135% increases, respectively, largely driven by manufacturing demand.
Earlier this year, Mahindra Logistics leased 2.97 lakh square feet near Pune at a monthly rent of ₹71.37 lakh over five years, while Indospace secured 1.2 lakh square feet in Pune, reflecting rising interest in strategically located, high-grade warehouse assets.
Analysts note that the Panvel lease underscores the city’s emerging role as a key logistics node. Proximity to the Navi Mumbai airport, improved road and rail connectivity, and modern warehousing infrastructure make Panvel an attractive destination for logistics operations. These developments align with global supply chain realignment, government infrastructure investment, and manufacturing expansion under initiatives such as the Production-Linked Incentive (PLI) programs.
