WAREHOUSING & LOGISTICS ABSORPTION TO REACH 36-42MN SQFT BY 2025-END

Mumbai, Kolkata & NCR together accounted for three-fourths of the pan-India absorption

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Warehousing and logistics sector is estimated to achieve pan-India absorption of 36-42 mn sqft by the end of 2025, largely driven by sustained demand from 3PL, e-commerce, and manufacturing occupiers.

According to a report by Vestian, the sector witnessed an absorption of 9.2 mn sqft in Q3 2025, rebounding by 64% compared to the subdued previous quarter. Despite this robust growth, the absorption was 36% less compared to the record level of absorption reported in the same quarter a year earlier. Similarly, absorption declined by 9% in nine months of 2025 compared to the same period in 2024, reaching 28.1 mn sqft.

Over the past few quarters, absorption moved cyclically, with sustained leasing activity typically concentrated in the latter half of the year. The recent recovery in Q3 2025 compared to the previous quarter suggests renewed traction on the back of 3PL, e-commerce, and engineering & manufacturing occupiers, aided by enhanced connectivity and ample supply of grade-A warehouses.

Mumbai accounted for 47% of the pan-India absorption in Q3 2025, the highest among the top seven cities. Its share also increased sharply from 16% in the previous quarter and 27% in Q3 2024, owing to renewed occupier demand in key micro-markets such as Bhiwandi and Panvel, which accounted for nearly 96% of the total absorption in the city.

Chennai's share gradually increased from 6% in Q3 2024 and 8% in Q2 2025 to 12% in the current quarter. Similarly, Kolkata's share also increased to 14% from a mere 2% in Q2 2025 and 3% in the same quarter a year ago. This is the highest quarterly share the city has ever witnessed, owing to the closure of large deals from Amazon and Delhivery.