India industrial and logistics leasing sets record in H1 2025

India’s industrial and logistics (I&L) market leased approximately 27.1 million sq ft of space during January to June 2025, setting a new half-year record for absorption, according to The India Industrial & Logistics Figures – H1 2025 report.

The growth, marking a 63% year-on-year increase, was driven by aggressive warehousing expansion by e-commerce and quick-commerce operators preparing for the festive season, along with steady leasing by third-party logistics (3PL) and engineering and manufacturing (E&M) companies.

Delhi-NCR, Bengaluru, and Hyderabad accounted for about 55% of the total leasing activity in H1 2025 and showed continued growth in space take-up on an annualised basis. 3PL operators led the space take-up with around 32% share, followed by e-commerce firms at about 25 percent and E&M companies at roughly 19 percent.

New supply additions during H1 2025 totalled 16.7 million sq ft, consistent with the same period in 2024. Bengaluru, Chennai, and Mumbai led the development completions, jointly contributing around 57 percent of the total supply addition.