New Delhi, Oct 15 India’s industrial and warehousing demand reached a record high with 26.5 million square feet of leasing in the first nine months of 2025, marking an 11 per cent year-on-year (YoY) growth, a report said on Wednesday.
Real estate services firm Colliers India said that during Q3 CY2025, new completions reached 9.4 million sq. ft, significantly outpacing demand and resulting in a 160-basis-point rise in vacancy levels on a sequential basis. The first nine months of 2025 witnessed a new supply of 28.8 million sq. ft, marking a 6 per cent year-on-year increase.
Grade A space uptake also hit an all-time high in the 9-month period, but demand slowed in the third quarter to 7.0 million sq. ft, marking a 23 per cent year-on-year decline, as global trade frictions made some occupiers cautious.
Nevertheless, the ongoing festive season and spur in warehousing requirements on account of higher e-commerce and electronics sales in the last quarter can push the demand in the last quarter, the report said.
Delhi-NCR, Chennai, and Mumbai collectively accounted for over 60 per cent of the nine-month take-up, with Chennai and Delhi-NCR each surpassing 5 million sq ft, while Mumbai reached 4.2 million sq ft.
Third-party logistics companies dominated occupier demand, accounting for nearly one-third of leasing activity. Engineering followed with 20 per cent, and e-commerce represented 15 per cent, the report noted
"Large deals continue to play a pivotal role in driving the industrial & warehousing demand, driving nearly half of the leasing volumes during 2025. Notably, 3PL and e-commerce segments witnessed notable large-sized transactions, supported by sustained consumption and easing of supply-side constraints," said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
Bhiwandi, Oragadam, Hoskote, Luhari, and Farukh Nagar remained the most active areas in 2025 so far, together accounting for 30 per cent of the demand.
"Looking ahead, despite ongoing trade volatilities, we expect occupier demand to remain firm, supported by sustained domestic consumption, a strong pipeline of under-construction projects, and continued focus on quality assets,” said Vimal Nadar, National Director & Head of Research, Colliers India.
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