Warehousing boom: Delhi-NCR, Bengaluru, Hyderabad drive record leasing

Warehousing Boom: Delhi-NCR, Bengaluru, Hyderabad drive record 59% of total leasing in 2025

Leasing activity in India’s industrial and logistics real estate segment surged 28 percent year-on-year to reach 37 million square feet (msf), an all-time high in the first nine months of 2025 (January–September), driven by strong occupier demand for high-quality Grade A facilities.

According to a report by CBRE India, the Delhi-National Capital Region led the momentum, accounting for 11.7 msf of total space leased, followed by Bengaluru (5.7 msf) and Hyderabad (4.6 msf). Together, these three markets accounted for nearly 59 percent of the country’s total leasing volume, underscoring their dominance as India’s top industrial and logistics hubs.

Mumbai and Kolkata registered space take-up of 4.2 msf and 3.8 msf.

The demand was largely led by the expansion of third-party logistics (3PL) providers and the accelerated deployment of quick commerce, Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said.

“Companies are increasingly focused on supply-chain optimisation and resilience, driving a mandate for sophisticated, high-specification Grade-A assets that support automation and reduce last-mile friction,” he said.

During January-September, the supply addition came in at 23.8 msf, as institutional investor-backed developers continued to expand their footprint, the report, released last week, said. Bengaluru, Chennai, and Mumbai together accounted for 62 percent of the total development completions.

In the third quarter of the year, industrial and logistics leasing reached 10.4 msf and 3PL players accounted for a 40 percent share, followed by e-commerce players at 18 percent and engineering and manufacturing firms at 15 percent.

Domestic players contributed 68 percent to the quarterly leasing, while Europe, Middle East, and Africa (EMEA) region corporates accounted for 14 percent.

Sustained demand from domestic corporates, coupled with robust supply additions in top cities, points to a maturing market that is increasingly aligning with India’s broader logistics and e-commerce growth story, said Ram Chandnani, managing director, advisory & transaction services, India, CBRE.

The momentum is expected to continue as businesses focus on optimising supply chains and expanding their footprints, he said.