Large Lease Deals Continue To Drive India’s Warehousing Growth

New Delhi, Oct 16 (KNN) India’s industrial and warehousing sector is witnessing strong momentum, fuelled by large lease transactions even as global economic conditions remain uncertain.

Major deals in 2025 include Amazon leasing 500,000 sq ft at Welspun Logistics Park in Delhi-NCR, Swiggy’s logistics arm Scootsy taking 580,753 sq ft in Bhiwandi, Mumbai, and DB Schenker leasing 384,809 sq ft at BGR Logistics Park, Mumbai. 

These high-value transactions highlight growing demand for last-mile connectivity and efficient supply chains across India.

Nearly half of the total leasing this year has come from large deals, primarily concentrated in India’s top eight cities. Average quarterly absorption of Grade-A industrial space stands at around 9 million sq ft in 2025. 

Between January and September, overall leasing across major industrial hubs increased 11% year-on-year, reaching 26.5 million sq ft.

Third-party logistics (3PL) firms led the demand with a 33% share, followed by engineering companies at 20%. E-commerce firms also expanded rapidly, increasing space absorption 2.5 times year-on-year and accounting for about 15% of total demand.

On the supply side, developers added 28.8 million sq ft of new warehousing space in the first nine months of 2025—6% higher than last year—with Delhi-NCR, Mumbai, and Chennai contributing the most.

However, leasing activity dipped 23% year-on-year in Q3 2025 to 7 million sq ft. Analysts expect the upcoming festive season and strong demand from e-commerce and electronics sectors to revive growth in Q4.

Experts note that the sector is shifting toward high-quality, sustainable warehouses, with growing interest in tier-II and tier-III cities. Backed by strong logistics and manufacturing demand, India’s industrial and warehousing segment is poised for steady long-term expansion.

(KNN Bureau)