CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today released the report, ‘India Industrial & Logistics Figures – H1 2025‘, highlighting that overall I&L leasing in India during Jan-Jun 2025 (H1 2025), across the top eight cities, surged 63% year-on-year to 27.1 mn. sq. ft., marking a new peak.
The third-party logistics (3PL) sector continued to lead in I&L space take-up with a market share of 32% in H1 2025. However, the surge was majorly led by the e-commerce sector, which saw its market share more than double from 9% in H1 2024 to 25% in H1 2025. I&L leasing by engineering & manufacturing (E&M) sector also increased from 18% in H1 2024 to 19% H1 2025.
The Jan–Jun 2025 period witnessed a substantial surge in leasing by e-commerce, driven by heightened consumer demand for diverse products, the need for quicker deliveries and the upcoming festive season. Leasing by 3PL sector stood at 32% in the overall leasing. Moreover, government-led infrastructure projects and policy initiatives, such as the Production Linked Incentive (PLI) scheme and Make in India 2.0, have significantly strengthened the country’s manufacturing sector, resulting in a heightened demand for warehousing space from E&M companies.
| Sectors | H1 2025 market share (in %) | H1 2024 market share (in %) |
| 3PL | 32 | 40 |
| E-commerce | 25 | 9 |
| E&M | 19 | 18 |
| Others | 24 | 33 |
During Q2 2025, the I&L leasing witnessed a significant 86% Y-o-Y increase to 14.6 mn. sq. ft. The third-party logistics (3PL) sector continued to account for the highest share in I&L leasing during Q2 2025, at 33%. Leasing from e-commerce players during the period increased significantly, accounting for a 24% share, compared to 9% during the same period last year.
During Apr-Jun ‘25, the share of I&L leasing by corporates from the APAC, Americas, and EMEA regions rose to ~43% of the total leasing, compared to ~19% in Q2 2024.
Among the three regions, APAC-based companies recorded their highest space take-up at 2.7 mn. sq. ft. during Q2 2025 (up from 0.6 mn. sq. ft in Q2 2024), followed by American and EMEA-based firms at 1.9 mn. sq. ft. and 1.7 mn. sq. ft., respectively.
| City | Leasing in Jan-Jun’25
(In mn. sq. ft.) |
| Delhi-NCR | 7.3 |
| Bengaluru | 4.0 |
| Mumbai | 2.9 |
| Hyderabad | 3.6 |
| Chennai | 2.3 |
| Pune | 2.2 |
| Kolkata | 3.3 |
| Ahmedabad | 1.4 |
In H1 2025, I&L supply stood at 16.7 mn. sq. ft. Bengaluru, Chennai, and Mumbai emerged as the key contributors to this supply addition, collectively accounting for 57% of the total supply during this period.
Among cities, during H1 2025, Delhi-NCR led the demand with an absorption of 7.3 mn. sq. ft., followed by Bengaluru at 4.0 mn sq. ft. and Hyderabad at 3.6 mn. sq. ft. Cumulatively, the three cities accounted for almost 55% of the leasing volume.
Completions of I&L developments are expected to sustain momentum, owing to the launch of several high-profile projects backed by institutional investors.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “The dominance of 3PL and e-commerce, which together drove over half of H1 demand, underscores how rapidly evolving consumer expectations and supply chain optimisation are reshaping the landscape. We foresee the next wave of growth being defined by premium, sustainable, and tech-enabled facilities, alongside accelerated expansion into tier-II cities to tap into underserved markets. This convergence of institutional capital, occupier demand, and infrastructure investment is setting the stage for a transformative decade for India’s logistics ecosystem.”
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Ram Chandnani, Managing Director, Leasing, CBRE India, said, “The robust growth in leasing activity, coupled with sustained institutional investments in quality assets, reflects the confidence of both occupiers and developers in India’s I&L sector. As occupiers focus on expanding their reach, particularly into tier-II cities, and developers prioritise sustainable and state-of-the-art facilities, we foresee a continued transformation in how warehousing and logistics networks are planned and executed.”
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I&L Outlook 2025
- Following a strong first half of 2025, we project robust warehousing demand for the upcoming quarters. 3PL, e-commerce, and retail sectors are likely to be the primary drivers of this space take-up as they aggressively pursue shorter delivery timelines and re-evaluate their supply chain models.
- Rentals: The ‘flight-to-quality’ trend and strong demand for compliant assets, especially in core markets (Delhi-NCR, Mumbai, and Bengaluru), are leading to an increase in the rental differential between investment-grade and sub-investment-grade assets.
- As the demand for premium, sustainable, and state-of-the-art warehouses continues to grow, we expect the 2025 supply pipeline to be led by leading developers, backed by institutional investors.
- Bengaluru, Chennai, Delhi-NCR, and Mumbai are projected to be the primary contributors to this new supply. However, project completions could face delays due to challenges such as limited land availability and rising acquisition costs, among other complexities.
- Developers are likely to pursue land in peripheral areas, along infrastructure corridors, and through brownfield projects.
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