India's industrial & logistics real estate leasing at record high in 9M 2025; Delhi-NCR tops with 11.7 msf

Leasing by the industrial & logistics (I&L) real estate sector grew 28% year-on-year to hit an all-time high in the first nine months of 2025 (January-September) as companies focus on high-specification Grade A assets, according to the latest report by real estate consultancy CBRE.

The report titled, ‘India Market Monitor Q3 2025 – Industrial & Logistics’ states that the total leasing during the period, across the top 8 Indian cities - Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad - stood at 37 mn. sq. ft., as compared to 28.8 mn. sq. ft. during 9M 2024.

During 9M 2025, Delhi-NCR accounted for the largest share of total leasing activity at 11.7 mn. sq. ft., followed by Bengaluru at 5.7 mn. sq. ft. and Hyderabad at 4.6 mn. sq. ft. The three cities accounted for a cumulative share of 59%.

Mumbai and Kolkata registered space take-up of 4.2 mn. sq. ft. and 3.8 mn. sq. ft., respectively.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said that the demand is largely led by the expansion of Third-Party Logistics (3PL) providers and the accelerated deployment of quick commerce. “Companies are increasingly focused on supply chain optimisation and resilience, driving a mandate for sophisticated, high-specification Grade A assets that support automation and reduce last-mile friction,” he added.

Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said, “The sustained demand from domestic corporates, coupled with robust supply additions in top cities, points to a maturing market that is increasingly aligning with India’s broader logistics and e-commerce growth story. This momentum is expected to continue as businesses focus on optimising supply chains and expanding their footprints.”

During 9M 2025, the supply addition came in at 23.8 mn. sq. ft. as institutional investor-backed developers continued to expand their footprint. Bengaluru, Chennai, and Mumbai collectively accounted for 62% of the total development completions.

In the July–September quarter (Q3 2025), total I&L leasing reached 10.4 mn. sq. ft.; 3PL players accounted for a 40% share, followed by e-commerce players at 18% and engineering and manufacturing firms at 15%. The domestic corporates contributed 68% to the total quarterly leasing, while EMEA corporates accounted for 14%.

Positive momentum to continue

I&L leasing momentum is likely to continue in Q4 2025. This positive outlook is supported by an anticipated increase in festive season-led demand, the upcoming completion of investment-grade supply, and the finalisation of pending transactions. The 3PL and e-commerce sectors are expected to remain the primary drivers of space absorption, fuelled by their ongoing e­fforts to optimise supply chains and reduce delivery timelines