Demand for industrial and warehousing spaces soars 63% to a record high in H1 2025, according to CBRE.

Leasing activity in India's industrial and warehousing sector jumped 63% year-on-year in H1 2025, hitting a historic 27.1 million square feet across eight key cities, as reported by real estate advisor CBRE. The robust growth was fueled by increased demand from e-commerce companies and third-party logistics (3PL) providers, which together represented 57% of overall leasing during this timeframe. CBRE observed that 3PL companies occupied 32% of leased space, whereas e-commerce companies increased their share to 25%, highlighting how consumer demands and supply chain efficiency are transforming India's logistics sector. Delhi-NCR became the leading market with 7.3 million sq. ft. leased, trailed by Bengaluru (4 million sq. ft.), Hyderabad (3.6 million sq. ft.), and Kolkata (3.3 million sq. ft.). Mumbai, Chennai, Pune, and Ahmedabad experienced significant growth, indicating a strong national demand. In H1 2025, supply additions reached 16.7 million sq. ft., with Bengaluru, Chennai, and Mumbai together accounting for 57% of the new supply. CBRE anticipates leasing activity to stay strong in H2 2025, with demand being fueled by 3PL, e-commerce, and retail sectors as the trend shifts towards premium, sustainable, and technology-driven facilities. The increasing interest in warehousing in tier-II cities indicates that the sector's presence is expanding throughout India.