India Industrial And Logistics Leasing Hits Record High

30 Dec 2025 CW Team

Demand for industrial and logistics spaces in India reached an all-time high in 2025, with leasing volumes rising nearly 19 per cent year-on-year to 76.5 million square feet across 24 major cities, according to data from Savills.

Savills India said the manufacturing sector accounted for the largest share of leasing activity at 29 per cent, followed by third-party logistics firms at 28 per cent and e-commerce companies at 12 per cent. The consultant noted that the sector continued its strong post-pandemic growth trajectory, recording its highest-ever annual absorption during the year.

In the 2024 calendar year, leasing of industrial and logistics spaces stood at 64.5 million square feet, underscoring the sharp acceleration in demand over the past 12 months.

Tier-I cities dominated leasing activity, with eight major markets — Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR and Pune — collectively registering 20 per cent growth in leasing to 59.5 million square feet in 2025, up from 49.7 million square feet a year earlier. Delhi-NCR emerged as the top-performing market, with leasing volumes rising to 13 million square feet from 9.8 million square feet in 2024.

Tier-II and Tier-III cities also recorded healthy momentum, with leasing activity increasing 14.5 per cent to 17 million square feet during the year, compared with 14.8 million square feet in the previous year. These markets included Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur, reflecting the widening geographic spread of industrial and logistics demand.

Looking ahead, Savills India expects both supply and absorption of industrial and logistics spaces to exceed 80 million square feet in the coming year, supported by sustained manufacturing growth, expanding supply chains and rising demand from logistics and e-commerce players.

Real Estate

30 Dec 2025

India Industrial And Logistics Leasing Hits Record High

Demand for industrial and logistics spaces in India reached an all-time high in 2025, with leasing volumes rising nearly 19 per cent year-on-year to 76.5 million square feet across 24 major cities, according to data from Savills. The real estate consultancy said the sector continued its strong post-pandemic growth trajectory, recording its highest-ever annual absorption during the year, compared with 64.5 million square feet leased in the 2024 calendar year. Manufacturing emerged as the largest occupier, accounting for 29 per cent of total leasing activity, followed closely by third-party log..

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