India’s logistics and industrial real estate sector posted robust double-digit growth in the first half of 2025, with total leasing at 30.7 million square feet (MSF) — a 21.6% year-on-year rise and 12.1% higher than the second half of 2024, according to Cushman & Wakefield’s H1 2025 Logistics & Industrials Marketbeat Report.
The surge was powered by strong demand across warehousing and manufacturing, with the sector surpassing 50 MSF in annual leasing for three consecutive years. Gross leasing is now expected to cross 60 MSF by year-end, setting a new benchmark for the industry.
Warehousing continued to dominate with 21.9 MSF, accounting for 71.3% of total leasing, while industrial space contributed 8.8 MSF (28.7%).
Sectoral trends
Engineering & Manufacturing (E&M) led activity with 9.7 MSF (32% share), recording 37% y-o-y growth.
3PL operators leased 7.4 MSF (24% share), reflecting stable, mature demand.
E-commerce saw the sharpest jump, rising 158% y-o-y to 4.6 MSF (15% share), fueled by festive season stocking and last-mile expansion.
“The H1 performance reinforces how India’s logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength,” said Abhishek Bhutani, Managing Director, Logistics & Industrial Services India, and Head–Gujarat, Cushman & Wakefield. “Occupiers are no longer only chasing capacity but also efficiency, location, and long-term value.”
City-wise performance
Mumbai led with 7.0 MSF (23% share), up 131.3% y-o-y, driven by warehousing and industrial demand.
Delhi NCR recorded 5.1 MSF (17% share), followed by Pune (4.5 MSF, 15%) and Chennai (4.4 MSF, 14%).
Bengaluru absorbed 3.3 MSF (11%), Hyderabad 2.7 MSF (9%), and Kolkata 2.0 MSF (7%).
Ahmedabad, though smaller in scale, posted the sharpest growth at 192.2% y-o-y, with 1.7 MSF (5.4% share), signaling its emergence as a logistics hub.
Outlook
With a healthy 25 MSF Grade-A warehousing pipeline over the next 2–3 years, along with supportive policies, Cushman & Wakefield expects India’s logistics and industrial sector to sustain its momentum through 2025. Growth drivers will include manufacturing expansion, deeper e-commerce penetration in Tier-II and Tier-III cities, and accelerated technology adoption in supply chain management.
