Large Deals Drive Industrial and Warehousing Leasing in 2025

India’s industrial and warehousing real estate market delivered a strong performance in 2025, supported by rising demand from logistics, e commerce and engineering companies. Leasing activity across the top eight cities recorded a healthy 16 percent year on year growth, reaching nearly 36.9 million sq ft, reflecting the sector’s expanding role in India’s infrastructure and supply chain ecosystem.

One of the defining trends of the year was the dominance of large ticket transactions. Deals sized at 200,000 sq ft and above accounted for around 45 percent of the total leasing volume, highlighting the growing preference of occupiers for scalable, Grade A facilities. This shift also points to consolidation by large players looking to optimize operations and improve efficiency.

On a quarterly basis, leasing activity picked up sharply in the final quarter of the year. After a relatively muted third quarter, Q4 2025 alone recorded about 10.4 million sq ft of leasing, driven by a revival in expansion plans and year end closures by occupiers.

City wise, Delhi NCR emerged as the largest contributor, accounting for 24 percent of total demand. Chennai followed closely with a 22 percent share, reinforcing its position as a key manufacturing and logistics hub in South India. At the micro market level, Bhiwandi in Mumbai led leasing activity with approximately 4.9 million sq ft of Grade A space absorption. Chakan Talegaon in Pune and Oragadam in Chennai also saw robust uptake, each contributing over 2.5 million sq ft during the year.

Third party logistics players continued to anchor the market, accounting for nearly one third of annual demand. Engineering and e commerce firms also remained active, together contributing about 35 percent of leasing activity. Notably, 3PL companies dominated the larger transactions segment, underscoring their aggressive expansion strategies.

Supply additions touched a multi year high of 41.7 million sq ft in 2025, marking a 15 percent annual increase and signaling improved developer confidence. Delhi NCR alone accounted for about 30 percent of new completions. With sustained government focus on manufacturing and logistics infrastructure, the industrial and warehousing sector is expected to see further scale up in the coming years.