Industrial & Warehousing real estate records 24.5% Y-o-Y demand growth in H1 2025: Savills India

The Industrial and Warehousing real estate segment witnessed robust absorption of 34 million sq. ft. in the first half of 2025, reflecting a 24.5% year-on-year increase compared to the 27.3 million sq. ft. absorbed during the same period in 2024, according to the latest findings by Savills India, a global real estate advisory firm.

- 

Absorption was driven by a substantial contribution from the manufacturing segment and sustained demand from the 3PL segment, followed by the e-commerce, FMCG/FMCD and retail segments. Notably, Tier I cities accounted for 77% of total absorption, while Tier II & III cities took the remaining 23%, as per Savills India. On the supply side, the market witnessed fresh supply of 33.4 million sq. ft., of which Tier I cities accounted for 27.3 million sq. ft. (82%), while Tier II & III cities contributed 6.1 million sq. ft. (18%). The market witnessed delivery of projects across cities in tandem with the growing demand.

Absorption (mn sq. ft.) Across Cities

H1 2025 H1 2024 Y-o-Y change

Overall 34.0 27.3 24.5%