Industrial and warehousing demand in India up 15% YoY

With 9 million sq ft of leasing in Q1, 2025 at a 15 per cent YoY growth, industrial and warehousing demand across the top eight cities remained robust.

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Delhi NCR and Chennai led the demand, cumulatively accounting for around 57 per cent of the overall leasing in Q1 2025.

The demand for Grade A industrial and warehousing space was particularly impressive in Delhi NCR; the city has already witnessed about half of the leasing activity of 2024 in the first quarter of 2025 alone.

Interestingly, across the top eight cities, engineering sector drove demand this quarter, contributing to about 25 per cent of the overall industrial & warehousing space uptake, followed by e-commerce with 21 per cent share.

Both these sectors have surpassed the demand from Third Party Logistics (3PL) players, the usual frontrunner.

While Chennai and Bengaluru saw strong traction from occupiers in the engineering space, demand from e-commerce players remained significant in Delhi NCR and Mumbai, according to Colliers India survey.

Engineering and e-commerce players drove the bulk of leasing during the quarter, together accounting for about 46 per cent of the demand.