KOLKATA, July 18: With about 20 mn sq ft of leasing activity in H1 2025 at 33 per cent YoY growth, industrial and warehousing demand across the top eight cities in India remained robust, a report said.
Delhi NCR and Chennai led the demand, cumulatively accounting for about half of the overall leasing in
H1 2025. Among the top eight cities, Delhi NCR, Chennai, Mumbai and Bengaluru saw impressive demand of at least 2 mn sq ft during the first half of the year.
Third Party Logistics (3PL) players continued to be the primary drivers of space uptake in Grade A warehouses & industrial sheds, contributing to about 32 pc share in overall demand during the first half of the year. In fact, demand from most occupier segments including 3PL, engineering, e-commerce, automobile, and retail firms rose significantly during H1 2025.
Meanwhile, at the micro market level, warehousing space uptake was the highest in Bhiwandi (Mumbai)
at 3.1 mn sq ft followed by Oragadam (Chennai) at 1.5 mn sq ft.
“During the second quarter of 2025, the industrial & warehousing sector saw about 11 mn sq ft of demand across the top eight cities, a 52 pc rise YoY. Notably, Q2 recorded the highest quarterly gross absorption in the last few years. Delhi NCR drove around one-fourth of the quarterly demand at 2.5 mn sq ft of Grade A space uptake. The demand in the region was led by large space uptake in Farukhnagar and Kulana micro markets,” according to Vijay Ganesh, MD, Industrial & Logistics Services, Colliers India.
He said cities like Delhi NCR, Mumbai and Chennai, with 60 pc demand share in Q2 2025, continued to
drive the industrial and warehousing sector in India.
The first six months of 2025 saw a new supply to the tune of 19 mn sq ft, an 11pc YoY rise. The new supply was almost in line with the strong leasing activity during H1 2025, indicating improved developer confidence in the industrial & warehousing market.
Taking cognizance of healthy demand across major cities and business environments, developers have been infusing high quality warehousing facilities replete with technologically advanced features.
(UNI)
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