DHL Logistics Private Limited has renewed its lease for 317,000 square feet of warehousing space in Panvel, near Mumbai, with Ascendas Panvel FTWZ Private Limited — part of the CapitaLand Group — for five years, according to documents accessed by Propstack.

The monthly rent for the facility, located within the Ascent Free Trade and Warehousing Zone, is Rs 18 million, or approximately Rs 56.70 per sq ft per month, the documents revealed. The lease commenced on 1 August 2024 and includes a five per cent escalation from June 2025. DHL has also deposited Rs 141.1 million as a security deposit.

Situated close to the upcoming Navi Mumbai International Airport, Panvel is rapidly emerging as a major logistics hub, attracting global supply chain players due to its connectivity and infrastructure advantages.

DHL Group, which operates over 21 million sq ft of warehousing space across India and serves more than 50,000 locations, declined to comment on the transaction, as did CapitaLand Group.

Earlier this year, Mahindra Logistics Limited leased 297,000 sq ft of industrial space near Pune for Rs 7.14 million per month, also for a five-year term, according to property records.

According to Knight Frank India’s half-yearly India Warehousing Market Report, leasing volumes surged 42 per cent year-on-year to 32.1 million sq ft across the top eight cities in the first half of 2025. The manufacturing sector led this growth with a 71 per cent annual increase in space uptake, accounting for 45 per cent of total transactions.

The report also noted that Grade A warehousing continues to dominate, constituting 63 per cent of total leased space, up from 54 per cent a year earlier. Nationwide, industrial and warehousing stock exceeded 500 million sq ft, with Grade A assets representing 75 per cent of new supply. Meanwhile, vacancy rates fell from 13.1 per cent to 12.1 per cent, reflecting strong demand.