India’s logistics and industrial real estate market is booming! In the first half of 2025, leasing activity hit 30.7 million square feet (MSF), marking a solid 21.6% jump from the same period last year and 12.1% more than the second half of 2024. This strong performance shows the sector’s solid foundation, with annual leasing topping 50 MSF for three years straight.
Experts at real estate firm Cushman & Wakefield predict gross logistics and industrial leasing will surpass 60 MSF by the end of 2025, smashing previous records and highlighting the growth in India’s warehousing and industrial spaces.
Warehousing led the charge, grabbing 21.9 MSF or 71.3% of total leasing, while industrial spaces added 8.8 MSF, or 28.7%. Looking at sectors, engineering and manufacturing (E&M) dominated with 9.7 MSF— that’s 32% of all deals and a whopping 37% year-on-year growth. This surge ties into India’s push for self-reliance, boosted by better infrastructure and government policies.
Third-party logistics (3PL) operators snapped up 7.4 MSF, holding a steady 24% share and showing the market’s maturity after years of rapid expansion. E-commerce stole the spotlight with a massive 158% year-on-year rise, leasing 4.6 MSF and claiming 15% of the total. The festive season rush and efforts to build last-mile delivery networks are fueling this e-commerce boom in logistics.
Abhishek Bhutani, Managing Director for Logistics and Industrial Services at Cushman & Wakefield in India (and Head for Gujarat), shared his insights: “The first half of 2025 proves India’s logistics and industrial sector has real staying power, moving past ups and downs. Businesses aren’t just after more space—they want efficiency, prime locations, and long-term wins. Manufacturing’s bigger role and e-commerce’s comeback are changing how supply chains work.”
Looking ahead, the sector looks bright with a pipeline of 25 MSF in top-grade warehousing expected over the next 2-3 years. Add in supportive policies, and India’s logistics and industrial real estate is set to keep climbing through 2025 and beyond.
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