Nearly 70% of the APAC occupiers prefer to expand their warehousing portfolio in India over the next two years: CBRE Survey

National, July 09, 2025: CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today announced the findings of its report, ‘2025 India Logistics Occupier Survey’, highlighting the growing momentum of the country’s Industrial and Logistics (I&L) sector.

The survey findings highlight that nearly 70% of APAC occupiers plan to expand their warehousing footprint in India over the next two years. This growing interest reflects the broader shift towards supply chain diversification, as companies aim to reduce dependency on single-market strategies. The sector is anticipating strong demand in South-East Asia and India across diverse segments, including third-party logistics (3PL), e-commerce, engineering and manufacturing (E&M), auto & auto ancillary, and fast-moving consumer goods (FMCG). Larger deals and modern facilities signal occupiers’ shift towards future-proof, compliant, and ESG-aligned warehousing, painting a promising picture of the sector’s forward momentum.

According to the report's findings, the sector is showing strong confidence in India's market potential, with more than 80% of India-based occupiers (both Indian and global firms with operations in India) planning to expand their warehousing portfolios over the next two years. Despite near-term uncertainties, the country remains a preferred destination for both global and domestic corporates. According to the survey, nearly 90% of India-based respondents expressed an intention to expand their logistics footprint over the next two to five years, indicating sustained long-term optimism.

The I&L sector is charting strong growth, driven by institutional capital, supportive regulatory reforms, and strategic penetration into tier-II and tier-III cities. This upward trajectory is reinforced by the rise of the 3PL segment, increased outsourcing, and a growing focus on sustainability and compliance. Indian occupiers are displaying strong confidence in the country’s logistics sector, with over 80% expecting improved business performance in the next two years. This optimism is driven by the country’s growing consumption, enhanced 3PL networks, rising modern logistics stock, and the government’s significant infrastructure push. The country’s logistics market, while still evolving, is witnessing rapid improvements in connectivity and cost-efficiency, particularly in non-metro locations. 

Key Findings from the 2025 India Logistics Occupier Survey

Business sentiment remains strong
• More than 80% of occupiers expect their business performance to improve over the next two years.
• Nearly 70% plan to expand their warehousing footprint in India, the highest among APAC peers, signalling robust demand for Grade A logistics space.

Top challenges
• Cost escalation (55%), driven by rising land and development costs.
• Economic uncertainty (49%), amidst global trade volatility.
• Intensifying market competition (46%), particularly for high-quality assets.

Occupier preferences driving ‘flight to quality’
• 84% of occupiers are moving from older facilities to newer, investment-grade warehouses.
• Strong demand for facilities offering better transportation connectivity, automation readiness, and ESG compliance. 

Technology and ESG take centre stage
• 57% of occupiers are investing in automation such as automated storage and retrieval systems (AS/RS).
• ESG criteria such as renewable energy availability, smart technology integration, and green building certifications are becoming key decision factors for occupiers.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “India’s logistics sector is undergoing a transformational growth phase, fuelled by robust macroeconomic fundamentals, accelerated infrastructure development, and a maturing occupier ecosystem that is increasingly focused on scalability, efficiency, and sustainability. The insights from our survey reaffirm India’s position as the most preferred logistics destination in the region. With resilient demand drivers, growing institutional participation, and future-ready infrastructure, the long-term growth trajectory for India’s logistics sector remains exceptionally strong.”

Ram Chandnani, Managing Director – Leasing, CBRE India, said, “India's Industrial & Logistics sector is charting a remarkably robust growth trajectory, propelled by significant institutional capital, progressive regulatory reforms, and strategic expansion into tier-II and tier-III cities. This strong momentum is further underscored by the growing prominence / prevailing dominance of the 3PL segment, increased outsourcing, and a growing emphasis on sustainability, leading to more than 80% of occupiers anticipating stronger business performance ahead.”

Note: CBRE 2025 Asia Pacific Logistics Occupier Survey was conducted between March and April 2025, collecting over 380 responses from logistics occupiers across the APAC region, including a significant 100+ responses from India-based occupiers.