India Market Monitor Q1 2025 – Industrial and Logistics

India’s industrial and logistics (I&L) real estate sector witnessed strong leasing activity during Q1 2025, registering a substantial ~40% Y-o-Y growth, driven primarily by robust demand from third-party logistics (3PL) and e-commerce companies. In response to the positive market sentiment, supply addition witnessed a remarkable ~57% Y-o-Y increase as institutional investor-backed developers expanded their footprint.

Following the positive trajectory observed in the first quarter, the sector is expected to maintain strong leasing momentum in 2025. This anticipated growth is underpinned by several key drivers: the infusion of high-quality supply, robust demand for distribution centres and warehousing facilities driven by increasing industrial activity, and the accelerated expansion of e-commerce leasing, particularly within the quick commerce segment.

The 3PL sector is poised to lead I&L leasing activity, reflecting the increasing demand for comprehensive supply chain and logistics solutions. However, a diversification of leasing contributors is also anticipated, with E&M, FMCG, and e-commerce sectors likely exhibiting substantial growth.

On the supply side, we anticipate that the proportion of projects completed by institutional investor-backed developers will continue to grow in the coming quarters as they expand their footprint to capitalise on robust demand.

To delve deeper into our analysis of India’s I&L real estate landscape, please click on the download button.