Delhi NCR Leads India Industrial Logistics Leasing With Record 11.7 Million

India’s industrial and logistics (I&L) real estate sector has recorded unprecedented leasing growth in the first nine months of 2025, driven by surging demand for high-specification Grade A assets. According to the latest industry analysis, leasing activity across the top eight Indian cities Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad rose 28 per cent year-on-year, reaching 37 million square feet between January and September, compared with 28.8 million square feet in the same period last year.

Delhi-NCR emerged as the frontrunner, accounting for 11.7 million square feet of leased space, followed by Bengaluru at 5.7 million square feet and Hyderabad at 4.6 million square feet. Together, these three cities contributed 59 per cent of total leasing activity, highlighting the growing strategic importance of northern and southern logistics hubs. Mumbai and Kolkata registered 4.2 million square feet and 3.8 million square feet respectively.

Industry experts attribute this robust demand to the expansion of third-party logistics (3PL) providers and e-commerce platforms, as companies increasingly prioritise supply chain optimisation, automation, and last-mile delivery efficiency. The rising focus on high-quality Grade A warehouses with advanced technology infrastructure has also contributed to sustained leasing momentum.

In the third quarter of 2025 alone, total I&L leasing reached 10.4 million square feet, with 3PL players absorbing 40 per cent of the space, e-commerce companies 18 per cent, and engineering and manufacturing firms 15 per cent. Domestic corporates accounted for 68 per cent of quarterly leasing, while EMEA corporates contributed 14 per cent, reflecting a strong domestic market base.Supply additions have also been significant. During the first nine months of 2025, developers added 23.8 million square feet of institutional-grade inventory, with Bengaluru, Chennai, and Mumbai together representing 62 per cent of new completions. This growth aligns with India’s broader logistics and e-commerce expansion, signalling a maturing market that blends corporate demand with strategic infrastructure planning.

Looking ahead, analysts expect the momentum to continue into the fourth quarter, supported by festive season demand, the completion of investment-grade facilities, and pending transactions. The I&L sector’s growth highlights the increasing sophistication of India’s logistics landscape, emphasising eco-efficient operations, sustainable warehouse design, and smart urban integration to reduce carbon footprints.As India strengthens its position in global supply chains, Delhi-NCR’s dominance underscores the city-region’s strategic value as a logistics and industrial hub while providing a blueprint for sustainable, technology-driven expansion across other major cities.

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Delhi NCR Leads India Industrial Logistics Leasing With Record 11.7 Million