India’s Industrial Warehousing Market Rebounds Strongly in Q3 2025, Led by Mumbai and NCR

India’s industrial and logistics warehousing market recorded a significant revival in the third quarter of 2025, signalling renewed confidence among occupiers after a muted performance earlier in the year. The sector registered close to 9.2 million sq ft of leasing activity during the quarter, marking a sharp 64 percent jump compared to the previous quarter. This growth highlights the sustained expansion of India’s supply chain ecosystem, supported by rising consumer demand and improving logistics networks across major metropolitan regions.

Mumbai continues to dominate national activity with the highest space take-up among all cities. Strong interest across Bhiwandi, Panvel and surrounding logistics corridors helped the region capture nearly half of India’s total warehousing demand. NCR emerged as the second-most active market, benefiting from improved leasing momentum from large occupiers and third-party logistics players.

Kolkata surprised with one of its best quarterly performances, reflecting growing interest from logistics, e-commerce and industrial occupiers in the eastern region. Chennai also demonstrated a steady and sustained rise in warehousing activity, driven by its established manufacturing base and expanding industrial clusters. Both cities continued to strengthen their position as reliable southern and eastern logistics hubs.

In contrast, Bengaluru and Pune witnessed reduced activity, reflecting sectoral adjustments and slower decision-making by large occupiers. While these markets have strong long-term fundamentals, their Q3 performance remained subdued compared to other leading regions. Hyderabad recorded stable leasing demand, supported by a mix of e-commerce players and contract logistics operators.

Industry experts attribute the overall Q3 recovery to the rebound of e-commerce and the consistent expansion of third-party logistics companies. As supply chains modernize and occupiers prioritize Grade-A warehousing, demand for high-quality space is expected to stay healthy in the coming quarters. Large occupiers are also focusing on network optimization, which will further elevate leasing traction in strategically positioned logistics corridors across the country.

With sustained demand, improving infrastructure and a growing preference for organized warehousing, India’s industrial logistics market remains on a strong upward trajectory. The Q3 numbers clearly indicate that the sector is gearing up for a more robust and broad-based expansion as the year progresses.