- Engineering & Manufacturing firms lead leasing with 9.7 MSF
- Mumbai, Delhi NCR, and Pune contribute 55% of total leasing; Ahmedabad posts the highest YoY growth at 192%
- Warehousing continues to dominate with 71% share; Industrial leasing up by 23.8% YoY
Cushman & Wakefield, one of the largest and fastest growing real estate services firm in India, released its H1 2025 Logistics & Industrials Marketbeat Report. The report highlights strong double-digit growth in leasing across warehousing and industrial segments, with total leasing at 30.7 million square feet (MSF) - a 21.6% increase YoY and 12.1% higher than H2 2024.
The performance underlines the sector’s strong fundamentals, with leasing activity surpassing 50 MSF annually for the last three consecutive years. With momentum holding strong, gross leasing is expected to cross 60 MSF by year-end, setting a new benchmark for India’s Logistics & Industrial market.
According to the report, warehousing remained the dominant driver, accounting for 21.9 MSF of leasing and representing 71.3%, while industrial space contributed 8.8 MSF, making up 28.7% of the total leasing.
From a sectoral perspective, Engineering & Manufacturing (E&M) led overall leasing with 9.7 MSF, accounting for ~32% of total absorption and recording a 37% YoY growth. This reflects the manufacturing sector’s growing role in India’s self-reliant economy, aided by infrastructure upgrades and supportive policies. 3PL operators leased 7.4 MSF, representing a 24% share and showcasing stable growth, indicating market maturity after earlier expansion waves. The E-commerce sector recorded the sharpest annual surge, with 158% YoY growth to reach 4.6 MSF and capture a 15% share of total leasing driven by festive season stocking and last-mile network expansion.
| Segment | H1 2025 Leasing (MSF) | YoY Growth (%) | Share in H1 2025 leasing |
| Engineering & Manufacturing |
9.7 | 37% | 32% |
| 3PL (Third-Party Logistics) | 7.4 | Negligible | 24% |
| E-commerce | 4.6 | 158% | 15% |
Overall sectoral share:
| Sector | Share |
| 3 PL | 24.15% |
| Automobile | 7.96% |
| Consumer durables |
3.80% |
| E-commerce |
15.11% |
| Engineering & Manufacturing |
31.51% |
| FMCG |
6.58% |
| Others |
3.91% |
| Pharmaceuticals |
1.66% |
| Retail | 5.32% |
Abhishek Bhutani, Managing Director, Logistics & Industrial Services India, Head- Gujarat, Cushman & Wakefield, said, “H1 performance reinforces how India’s logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength. The consistency of demand across segments highlights that occupiers are no longer only chasing capacity but also efficiency, location, and long-term value. What stands out is the sharper role of manufacturing and the resurgence of e-commerce, which together are reshaping supply chain strategies. At the same time, the stabilisation of 3PL activity signals that India now has a more mature logistics backbone to build on. This strong first-half showing, combined with a robust Grade-A supply pipeline and rising occupier interest in strategic hubs, positions the sector to cross 60 MSF of leasing in 2025—setting a new benchmark for India’s role in global supply chains.”
In terms of cities, Mumbai led the leasing activity in H1 2025 with 7.0 MSF, accounting for a 23% share, recording a remarkable 131.3% YoY growth, driven by strong warehousing and industrial demand. Ahmedabad, though smaller in absolute volume at 1.7 MSF, posted the highest YoY growth at an impressive 192.2%, making up 5.4% share, underscoring its rising prominence in the logistics and industrial landscape. Delhi NCR recorded 5.1 MSF with ~17% share and Pune reported 4.5 MSF with ~15% share leading the overall leasing. Chennai registered 4.4 MSF with 14% share, Bengaluru 3.3 MSF with ~11% share, Hyderabad 2.7 MSF with ~9% share, and Kolkata 2.0 MSF and ~7% share, also recorded steady leasing activity.
| City |
H1 2025 Gross Leasing (MSF) |
YoY (% CHANGE) |
% share in overall leasing |
| Delhi NCR | 5.1 | +7.8% | 16.75% |
| Mumbai | 7 | +131.3% | 22.70% |
| Pune | 4.5 | -25.1% | 14.64% |
| Chennai | 4.4 | +12.2% | 14.33% |
| Bengaluru | 3.3 | -11.6% | 10.79% |
| Hyderabad | 2.7 | +68.0% | 8.75% |
| Kolkata | 2 | +25.1% | 6.55% |
| Ahmedabad | 1.7 | +192.2% | 5.48% |
With strong demand fundamentals, a healthy supply pipeline of ~25 MSF of Grade-A warehousing is expected over the next 2–3 years, and supportive policy measures, India’s logistics and industrial real estate sector is poised to maintain its upward trajectory through 2025. Growth will be driven by sustained manufacturing expansion, e-commerce penetration into Tier-II and Tier-III cities, and continued adoption of technology in supply chain management.