India’s industrial and logistics warehousing sector witnessed a sharp 22% year-on-year surge in demand during the July–September quarter, driven by robust growth in manufacturing, e-commerce, and third-party logistics (3PL) operations. The total leasing activity touched nearly 16 million square feet, signaling strong post-pandemic resilience and continued investor confidence in India’s infrastructure and supply chain ecosystems. With policy incentives such as the Production-Linked Incentive (PLI) scheme and improving connectivity across industrial corridors, the warehousing industry is rapidly evolving into one of the most dynamic segments of India’s real estate market, attracting both domestic developers and global institutional investors.
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Warehousing Market Rebounds with Strong Momentum
India’s warehousing industry has emerged as a bellwether for the nation’s economic expansion, posting a 22% year-on-year rise in gross leasing volume during the third quarter of 2025. The total demand reached approximately 16 million square feet, reflecting heightened activity from manufacturing and retail occupiers.
This momentum underscores the structural transformation underway in India’s logistics ecosystem. The surge in demand is not merely cyclical—it represents a fundamental shift toward supply chain modernization. Enhanced consumption patterns, efficient freight movement, and the rise of direct-to-consumer (D2C) brands have all fueled this upward trajectory.
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3PL and E-Commerce Drive Majority of Leasing Activity
Third-party logistics (3PL) operators and e-commerce players continued to dominate warehousing demand, collectively accounting for over 50% of total leasing during the quarter. These segments have expanded aggressively to support the country’s fast-growing retail network and rising digital penetration.
Warehousing hubs in Delhi-NCR, Mumbai, Bengaluru, Chennai, and Pune remained the top performers, while Tier-II cities such as Lucknow, Coimbatore, and Indore also recorded rising traction. The decentralization trend highlights how occupiers are now moving closer to consumption centers to minimize delivery timelines and enhance efficiency in last-mile operations.
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Manufacturing Sector Strengthens Supply Chain Backbone
India’s push to become a global manufacturing hub is also reshaping the demand for industrial warehousing. The government’s PLI schemes, incentives for electronics and auto manufacturing, and steady export growth have encouraged large-scale investments in industrial infrastructure.
Manufacturers are increasingly adopting built-to-suit facilities that integrate automation, advanced storage technologies, and sustainability features. This has led to a notable shift in the type of warehousing space being developed—from traditional storage units to integrated, technology-enabled logistics parks designed for efficiency
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