India’s industrial and warehousing demand grows 11 pc in 9 months of 2025

New Delhi, Dec 16 India’s industrial and warehousing market remained resilient in 2025, with cumulative demand across the top eight markets reaching 26.5 million square feet in the first nine months of the year, reflecting an 11 per cent year‑on‑year increase, a report said on Tuesday.

The report from Colliers said that annual demand could reach 30-–40 million sq ft, with new supply likely to remain elevated at 35–40 million sq ft in 2025.

Third‑party logistics (3PL) players continued to dominate leasing activity, accounting for nearly one‑third of warehousing demand, while e‑commerce and engineering firms also saw surge in demand.

Colliers forecasts that policy support and modernisation will drive growth in 2026 for emerging markets as 3PLs accelerate Grade A demand across tier I cities and emerging hubs.

Further, the report said that rising traction in Tier 2 and 3 cities will be supported by enhanced regional connectivity through expressways, dedicated freight corridors, industrial corridors, and upcoming Multi-Modal Logistics Parks (MMLPs).

Strong policy push and better implementation of flagship programs such as Make in India, the Production-Linked Incentives (PLI) scheme, and Gati Shakti masterplan, are likely to accelerate India’s transformation into a competitive manufacturing hub.

The real estate services firm said that demand for ESG compliant and technology adept Grade A warehouses and logistics parks is set to rise in 2030.

“With developers adopting global standards in design, sustainability, and automation, the segment is expected to draw deeper institutional capital and accelerate the inclusion of premium warehouses in future REITs/InvITs,” it said.

In alternative asset classes, Data Centers (DC) capacity has scaled to over 1,300 MW capacity with a real estate footprint of nearly 16 million sq ft across top seven markets.

This growth is driven by surging demand for cloud and digital services, accelerated adoption of AI and IoT, deeper internet penetration, regulatory push and stricter data localization norms.

Alternative asset classes such as data centers, senior living, and co-living are poised for sustained momentum in 2026 as investors seek diversification and enhanced risk-adjusted returns, the report noted.

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