September 14, 2025

India's logistics and industrial real estate sector saw an electrifying surge in the first half of 2025! Leasing spaces shot up to 30.7 million square feet (MSF), marking a smashing 21.6% increase compared to last year and a 12.1% rise over the second half of 2024, says Cushman & Wakefield's fresh H1 2025 Logistics & Industrials Marketbeat Report. What's fueling this boom? Strong demand from warehouses and manufacturing units is the key. The sector has shown true muscle by topping 50 MSF in leasing every year for the last three years, with predictions now pointing towards smashing 60 MSF by the end of 2025 - a brand-new record! Warehousing is the heavyweight champion here, making up 21.9 MSF or over 71% of the leasing pie. Industrial spaces chip in with 8.8 MSF (28.7%). Among industries, Engineering & Manufacturing (E&M) leads the charge with 9.7 MSF leased—32% of the total—and a dazzling 37% year-on-year growth. Third-party logistics (3PL) players also hold a solid 24% share with 7.4 MSF, showing the market is maturing after earlier growth waves. But wait, the real firecracker is e-commerce! It recorded a jaw-dropping 158% year-on-year growth, leasing 4.6 MSF and grabbing 15% of total leasing. Thanks to festive season stocking and expanding last-mile delivery networks, e-commerce is zooming ahead. Abhishek Bhutani, Managing Director, Logistics & Industrial Services India, Head - Gujarat at Cushman & Wakefield, sums it up: "H1 performance reinforces how India's logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength. The consistency of demand across segments highlights that occupiers are no longer only chasing capacity but also efficiency, location, and long-term value." City-wise, Mumbai steals the show with 7.0 MSF leased—a massive 23% share and a whopping 131.3% yearly growth, driven by warehousing and industrial demand. Ahmedabad, though smaller at 1.7 MSF, boasts the highest yearly jump of 192.2%, signaling its rise as a logistics superstar. Delhi NCR follows with 5.1 MSF (17%), Pune with 4.5 MSF (15%), Chennai 4.4 MSF (14%), Bengaluru 3.3 MSF (11%), Hyderabad 2.7 MSF (9%), and Kolkata 2.0 MSF (7%)—all showing healthy leasing action. Looking ahead, a booming 25 MSF of Grade-A warehousing is set to hit the market in the next 2-3 years. With strong policies and vibrant demand, experts expect India’s logistics and industrial real estate to keep soaring through 2025, powered by manufacturing growth, spreading e-commerce in Tier-II and III cities, plus smart tech shaking up supply chains. Exciting times ahead for the Indian logistics sector!

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Tags: India logistics, Industrial real estate, Warehousing growth, Leasing data 2025, E-commerce boom, Manufacturing sector,