Industrial & Logistics sector leasing grew by ~40% Y-o-Y across top 8 cities, touching 12.1 mn. sq. ft. in Jan–Mar ‘25

National – April 23, 2025 – CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, announced the findings of its report, ‘India Market Monitor Q1 2025 – Industrial & Logistics’. The report indicates that leasing in the Industrial & Logistics (I&L) sector grew by ~40% Y-o-Y in Jan- Mar ‘25 period. The total leasing across the top 8 Indian cities (Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, Ahmedabad) stood at 12.1 mn. sq. ft.

Delhi-NCR, Hyderabad, and Bengaluru collectively accounted for ~60% leasing share during the Jan-Mar ‘25 period. Delhi-NCR recorded the highest leasing share (~30%) in total space take-up during this period at 3.7 mn. sq. ft., followed by Hyderabad at 1.9 mn. sq. ft. (~15% share) and Bengaluru at 1.7 mn. sq. ft. (~14% share). Pune & Chennai accounted for ~13% and ~8% share, respectively, in the total leasing during the quarter.

During the Jan–Mar ‘25 period, 3PL players accounted for a 31% share in the total leasing, followed by e-commerce players with a 28% share. Notably, leasing by e-commerce players witnessed more than 3x Y-o-Y growth. The engineering and manufacturing sector accounted for 17% share in leasing, while the auto and ancillary segment contributed 8%, and the fast-moving consumer goods (FMCG) sector accounted for ~5% share in the total quarterly leasing.

The supply addition from Jan-Mar ‘25 recorded a substantial Y-o-Y growth of ~57% as institutional investor-backed developers continued to expand their footprint. The total supply during this period stood at 12.4 mn. sq. ft., with Mumbai, Bengaluru, and Chennai collectively accounting for 69% of the new supply.

Outlook
- Following the positive trajectory observed in the first quarter, India’s I&L sector is expected to maintain strong leasing momentum in 2025.
- This anticipated growth is expected to be underpinned by the infusion of high-quality supply, robust demand for distribution centres and warehousing facilities, 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; however, a diversification of leasing contributors is also anticipated, with sectors such as E&M, FMCG, and e-commerce 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.