By Maria Kalamatas | July 30, 2025
Mumbai, July 30 — India’s logistics and industrial real estate sector is experiencing its strongest growth in years, with warehouse leasing volumes surging 63 percent in the first half of 2025 compared to the same period last year. Developers and logistics providers signed agreements for 27.1 million square feet of space between January and June, fueled largely by e-commerce expansion and the rise of third-party logistics operators.
“This level of demand is unprecedented,” said Arjun Sethi, a senior analyst at CBRE India. “E-commerce companies are building out regional hubs at a pace we haven’t seen before, while 3PL players are locking in capacity to stay competitive in fast-growing markets.”
Regional hotspots leading the growth
The bulk of the new leasing activity is concentrated in cities such as Delhi-NCR, Mumbai, and Bengaluru, where proximity to dense consumer markets and improved transport links has driven developers to accelerate construction. Several new industrial corridors, including projects along the Delhi-Mumbai Expressway, are also contributing to the surge.
“The infrastructure push is critical,” Sethi added. “Better highways and multimodal connections make it easier for retailers to cut delivery times, which is why demand is spreading beyond the traditional hubs.”
Impact on the logistics landscape
The growth has drawn global investors as well, with private equity firms and institutional funds acquiring stakes in large-scale warehousing parks. Local logistics operators say the influx of capital is helping standardize facilities, with features like automated racking systems, cold storage, and renewable energy integration becoming more common.
“This isn’t just about space — it’s about quality,” noted Neha Kapoor, operations head at a Delhi-based fulfillment company. “Shippers want warehouses that can handle automation and sustainability standards, and developers are responding.”
What comes next
Analysts predict that leasing activity could surpass 50 million square feet by the end of 2025 if current momentum continues, with strong interest from retailers preparing for India’s festive shopping season later this year.
