India’s Warehousing Leases Rise 50 per cent in Q1 2025
WAREHOUSING & LOGISTICS

India’s Warehousing Leases Rise 50 per cent in Q1 2025

India’s warehousing sector is witnessing a strong resurgence, with leasing volumes soaring by 50 per cent year-on-year in the first quarter of 2025, reaching 16.7 million square feet. This growth is being propelled by a revitalised manufacturing base and the resurgence of the e-commerce sector, indicating robust investor confidence in India’s evolving logistics landscape.

The manufacturing sector led the charge, accounting for 48 per cent of total warehousing space leased between January and March 2025—almost double the level seen during the same period last year. This surge underscores the impact of India’s industrial policies and global supply chain shifts.

E-commerce players also ramped up their warehousing presence, recording a 151 per cent increase in leasing activity. Though from a lower base, the sharp rise reflects increased focus on distribution scale driven by higher digital retail penetration and enhancements in freight and storage infrastructure.

Meanwhile, third-party logistics (3PL) operators recorded a modest 12 per cent growth. Their share of overall transactions dropped to 23 per cent, indicating a trend towards in-house logistics operations by manufacturers and e-commerce firms aiming to cut costs and reduce delivery times.

Mumbai topped leasing activity with 27 per cent share, amounting to 4.4 million square feet. Pune, Chennai, and the National Capital Region (NCR) followed, each accounting for 16–17 per cent. Manufacturing companies drove demand in Pune and Chennai, while NCR remained a 3PL stronghold.

Among emerging hubs, Chennai and Hyderabad stood out, registering growth of 154 per cent and 137 per cent respectively. This shift signals a strategic decentralisation of warehousing clusters in line with infrastructure enhancements and proactive state-level policies.

A growing preference for Grade A facilities was also evident, comprising 59 per cent of total leases. As firms seek to comply with international standards, demand continues to grow for energy-efficient, structurally robust, and digitally enabled warehouses.

India’s logistics transformation is further bolstered by the China-plus-one strategy, ‘Make in India’ initiative, and the National Logistics Policy. With infrastructure development accelerating and states pushing sustainable logistics ecosystems, the warehousing sector is well-positioned to support India’s transition to smarter, more efficient urban centres. The outlook remains bullish as demand for last-mile, tech-enabled warehousing expands across sectors.

India’s warehousing sector is witnessing a strong resurgence, with leasing volumes soaring by 50 per cent year-on-year in the first quarter of 2025, reaching 16.7 million square feet. This growth is being propelled by a revitalised manufacturing base and the resurgence of the e-commerce sector, indicating robust investor confidence in India’s evolving logistics landscape.The manufacturing sector led the charge, accounting for 48 per cent of total warehousing space leased between January and March 2025—almost double the level seen during the same period last year. This surge underscores the impact of India’s industrial policies and global supply chain shifts.E-commerce players also ramped up their warehousing presence, recording a 151 per cent increase in leasing activity. Though from a lower base, the sharp rise reflects increased focus on distribution scale driven by higher digital retail penetration and enhancements in freight and storage infrastructure.Meanwhile, third-party logistics (3PL) operators recorded a modest 12 per cent growth. Their share of overall transactions dropped to 23 per cent, indicating a trend towards in-house logistics operations by manufacturers and e-commerce firms aiming to cut costs and reduce delivery times.Mumbai topped leasing activity with 27 per cent share, amounting to 4.4 million square feet. Pune, Chennai, and the National Capital Region (NCR) followed, each accounting for 16–17 per cent. Manufacturing companies drove demand in Pune and Chennai, while NCR remained a 3PL stronghold.Among emerging hubs, Chennai and Hyderabad stood out, registering growth of 154 per cent and 137 per cent respectively. This shift signals a strategic decentralisation of warehousing clusters in line with infrastructure enhancements and proactive state-level policies.A growing preference for Grade A facilities was also evident, comprising 59 per cent of total leases. As firms seek to comply with international standards, demand continues to grow for energy-efficient, structurally robust, and digitally enabled warehouses.India’s logistics transformation is further bolstered by the China-plus-one strategy, ‘Make in India’ initiative, and the National Logistics Policy. With infrastructure development accelerating and states pushing sustainable logistics ecosystems, the warehousing sector is well-positioned to support India’s transition to smarter, more efficient urban centres. The outlook remains bullish as demand for last-mile, tech-enabled warehousing expands across sectors.

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?