3 key trends shaping the industrial & warehousing sector in H1 2025:

3PL continues to dominate demand in H1 2025: During the first half of 2025, 3PL players continued to dominate demand, accounting for around one-third of the leasing activity. Concurrently, space uptake by other occupier segments such as engineering, e-commerce, and automobiles was also notable, with each segment accounting for 2-4 mn sq ft of space uptake during H1 2025.

“While 3PL players continue to lead overall demand, engineering, e-commerce, and automobiles segments have been steadily gaining traction over the last few quarters. Each of these three segments accounted for around 10-20% of the Grade A space uptake in H1 2025. It also sets a strong foundation for continued growth in the industrial & warehousing sector through the rest of 2025,” says Vimal Nadar, National Director & Head of Research, Colliers India.

Large-sized deals account for 51% of gross leasing: During H1 2025, large deals (>200,000 sq ft) accounted for about half of the demand. Although a vast majority of these larger deals came from 3PL players, the e-commerce and engineering segments also continued to witness large warehousing space requirements. At the city level, Delhi NCR, followed by Mumbai, dominated large-sized deals during H1 2025.

New supply rises by 11% on an annual basis: The new supply was almost in line with the strong leasing activity during H1 2025, indicating improved developer confidence in the industrial & warehousing market. Taking cognisance of healthy demand, developers have been infusing high-quality warehousing facilities replete with technologically advanced features. Delhi NCR and Chennai accounted for close to half of the new supply across the top eight cities. Notably, Q2 2025 witnessed 10 mn sq ft of completions in top eight cities of the country, an 8% YoY rise.

industrial & warehousing sector

India's warehousing demand up 33% in H1 2025 to 20 mn sq ft: 3 key growth drivers