Industrial & Warehousing Demand Surges 15% YoY in Q1 2025: Colliers

05 May 2025 CW Team

Body Text: India’s industrial and warehousing sector posted strong growth in Q1 2025, recording 9 million sq ft of leasing across the top eight cities, marking a 15% year-on-year rise, according to Colliers India. Delhi NCR led with over 3 million sq ft (35% share), followed by Chennai (22%). Notably, the engineering and e-commerce sectors together accounted for nearly half of the demand this quarter, surpassing the traditionally dominant 3PL sector.

New supply matched the momentum, with 9.4 million sq ft added—up 16% YoY—mainly concentrated in Delhi NCR and Chennai. Large deals (over 200,000 sq ft) made up 48% of leasing activity, reflecting robust demand, particularly from e-commerce, engineering, and automobile players. Micro-markets like Bhiwandi (Mumbai), Luhari (Delhi NCR), and NH-16 (Chennai) emerged as key leasing hubs.

Despite rising vacancy levels (up to 13% due to churns and exits), average rentals increased across major cities, supported by strong demand in prime industrial clusters. Industry leaders express optimism, projecting sustained momentum through 2025.

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