India Market Monitor Q4 2024 – Industrial and Logistics

India’s industrial and logistics (I&L) real estate sector witnessed robust leasing activity during the October to December period, registering ~47% Y-o-Y growth, driven primarily by strong demand from the third-party logistics (3PL) and fast-moving consumer goods (FMCG) segments.

Reflecting this positive sentiment, supply additions during the quarter also experienced growth on a year-on-year basis as numerous leading developers continued to expand their footprint.

Leasing momentum in the country’s I&L sector is projected to strengthen in 2025, driven by high-quality supply addition, the culmination of pending transactions, and anticipated growth in e-commerce demand. Delhi-NCR, Kolkata, and Bengaluru are expected to lead the space take-up during the year. With the introduction of investment-grade assets and rising land costs, warehousing rentals across micro-markets will likely maintain their upward trajectory.

Within the tenant landscape, 3PL companies are anticipated to maintain their prominent position. This trend reflects the ongoing strategic imperative for businesses to optimise supply chains through outsourcing, enhancing operational efficiency. Furthermore, amid increasing consumer demand, government initiatives aimed at strengthening the domestic manufacturing ecosystem are expected to drive growth in space take-up across the E&M, manufacturing, FMCG, retail, and e-commerce sectors.

We also foresee that the share of projects completed by larger developers backed by institutional funds would continue to increase in the upcoming quarters. Furthermore, occupiers and developers are anticipated to continue prioritising sustainability initiatives. In addition, key stakeholders are expected to maintain a strategic focus on India's leading tier-II cities, recognising their considerable growth potential.

To delve deeper into our analysis of the country’s I&L market, please click on the download button.